Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 24 November 1992
Length: 10 pages
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Abstract
Describes the transaction and translation exposures that companies doing business internationally face when foreign exchange rates change. Also discusses how to measure and cover both types of exposure. Covering techniques are demonstrated using examples of forward cover, money market hedges, and options market hedges. Other covering devices, such as swaps and leads and lags, are also presented. Explains how these exposures relate to each other and what can be done to minimize overall foreign exchange risk.
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 2 pages
About
Abstract
Describes the transaction and translation exposures that companies doing business internationally face when foreign exchange rates change. Also discusses how to measure and cover both types of exposure. Covering techniques are demonstrated using examples of forward cover, money market hedges, and options market hedges. Other covering devices, such as swaps and leads and lags, are also presented. Explains how these exposures relate to each other and what can be done to minimize overall foreign exchange risk.
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 2 pages