International Finance 1 min read
Options on Currency Futures
Instead of having to buy and sell currency pairs, options in a currency future offers the contract-holders the right, but…
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International Finance 1 min read
Options on Currency Pairs
The party that purchases a currency pair call option may also decide to settle for an execution or to sell…
International Finance 1 min read
Foreign Currency Futures
Currency futures make the buyer of the contract to buy the long currency (numerator) by paying with the short currency…
International Finance 1 min read
Long and Short Currency Trading
Currency futures and options are derivative contracts. These contracts derive their own values from utilization of the underlying assets, which,…
International Finance 1 min read
Foreign Currency Futures & Options
Depending on the selection of buying or selling the numerator or denominator of a currency pair, the derivative contracts are…
International Finance 2 min read
Managing Economic Exposure
The economic exposure risks can be removed through operational strategies or currency risk mitigation strategies. Operational strategies ● Diversifying production facilities and markets for…
International Finance 1 min read
Determining Economic Exposure
The economic exposure is usually determined by two factors − ● Whether the markets where the company inputs and sells its products…
International Finance 2 min read
Calculating Economic Exposure
Foreign asset or overseas cash flow value fluctuates with the exchange rate changes. We know from statistics that a regression…
International Finance 1 min read
Benefits and Risks of Financial Globalization
One of the major benefits of Financial Globalization is that the risk of a “credit crunch” has been reduced to…
International Finance 2 min read
Economic Exposure – An Example
Consider a big U.S. multinational with operations in numerous countries around the world. The company’s biggest export markets are Europe…
International Finance 1 min read
Types of Exposure
Companies are exposed to three types of risk caused by currency volatility − ● Transaction exposure − Exchange rate fluctuations have an effect on…
Advanced Concepts 1 min read
Semiconductor Diode Notation
The notation most frequently used for semiconductor diodes is provided in Fig. 1.40. For most diodes any marking such as…
