TAILIEUCHUNG - Lecture Multinational financial management: Lecture 6 - Dr. Umara Noreen

Lecture - Currency derivatives. After completing this chapter, students will be able to: To explain how forward contracts are used for hedging based on anticipated exchange rate movements; and to explain how currency futures contracts and currency options contracts are used for hedging or speculation based on anticipated exchange rate movements. | Currency Derivatives 6 Lecture Chapter Objectives To explain how forward contracts are used for hedging based on anticipated exchange rate movements; and To explain how currency futures contracts and currency options contracts are used for hedging or speculation based on anticipated exchange rate movements. Forward Market A forward contract is an agreement between a firm and a commercial bank to exchange a specified amount of a currency at a specified exchange rate (called the forward rate) on a specified date in the future. Forward contracts are often valued at $1 million or more, and are not normally used by consumers or small firms. Forward Market When MNCs anticipate a future need for or future receipt of a foreign currency, they can set up forward contracts to lock in the exchange rate. The % by which the forward rate (F ) exceeds the spot rate (S ) at a given point in time is called the forward premium (p ). F = S (1 + p ) F exhibits a discount when p < 0. Forward Market Example

• Tài chính doanh nghiệp
• Multinational financial management
• Financial management
• Lecture Multinational financial management
• Currency derivatives
• Anticipated exchange rate movements
• Multinational capital budgeting
• Capital structure
• Multinational cost of capital
• Multinational cost
• Capital budgeting analysis
• International project
• Costs of capital
• Country risk analysis
• Multinational corporation
• Capital budgeting
• International financial reporting standards
• Foreign exchange risk management
• International cash management
• Cash flow analysis
• Centralized cash management
• Lesson International financial management
• International financial management
• Globalization Multinational Firm
• The Multinational Firm
• Multinational Corporations
• Foreign Exchange Risk
• Quản lý tài chính
• Quản lý tài chính đa quốc gia
• Multinational finance
• Finance careers
• Optimizing cash flows
• Investing excess cash
• Management control
• Corporate control
• MNCs Financial Management
• Goals of MNC
• The rise of the MNCs
• Internationalization of Business
• Multinational Financial Management Theory
• Cash flows
• Multiple choice
• International equity markets
• Measures of liquidity
• Market structure