Hedging Strategies
Hedging refers to a technique to transfer the risk. It is used to avoid any worsening of an exchange position; an importer can hedge an
Hedging refers to a technique to transfer the risk. It is used to avoid any worsening of an exchange position; an importer can hedge an
Table of Contents1 What is Foreign Exchange Exposure?2 Foreign Exchange Risk3 Types of Foreign Exchange Exposure3.1 Transactions Exposure3.1.1 Techniques of Managing Transaction Exposure3.1.1.1 Forward contract3.1.1.2
Table of Contents1 What is Purchasing Power Parity?2 What is Purchasing Power Parity Theory?3 Absolute Purchasing Power Parity Theory3.1 Absolute PPP Theory Formula3.2 Assumption of
Table of Contents1 What is an Exchange Rate?2 Exchange Rate Determinants2.1 Demand and supply2.2 Domestic Economic Policies2.3 Interest rate differentials2.4 Expectations and other psychological factors2.5
Table of Contents1 What is Foreign Exchange Market?2 Introduction to Foreign Exchange Markets2.1 Fixed and Floating Rates2.1.1 Advantages of Fixed Rates System2.1.2 Disadvantages of Fixed
Table of Contents1 Foreign Exchange Market in India1.1 First Tier of Foreign Exchange Market1.2 Second Tier of Foreign Exchange Market1.3 Third Tier of Foreign Exchange
Table of Contents1 What is International Financial Markets?2 Instruments of International Financial Markets2.1 Foreign Exchange Market2.2 Derivative Products2.3 International Currency Market2.4 Eurocurrency Market2.5 European Monetary
Table of Contents1 Introduction of World Bank2 Purpose of World Bank3 What is World Bank?4 World Bank Group4.1 International Bank for Reconstruction and Development4.2 International
Table of Contents1 International Monetary Fund2 What is International Monetary Fund?3 Purpose of International Monetary Fund4 IMF Financial Policies and Operations4.1 Financial Assistance4.1.1 Regular IMF
Table of Contents1 What is Balance of Payments (BOP)?2 Balance of Payments (BOP) Definition3 Characteristics of Balance of Payments4 Components of BOP4.1 Current Account4.2 Capital