TAILIEUCHUNG - Lecture Multinational financial management: Lecture 7 - Dr. Umara Noreen

After completing this chapter, students will be able to: To differentiate among forward, futures and option contracts, to explain how forward contracts are used for hedging based on anticipated exchange rate movements; to explain how currency futures contracts and currency options contracts are used for hedging or speculation based on anticipated exchange rate movements. | Currency Derivatives 7 Lecture Currency Futures Market Enforced by potential arbitrage activities, the prices of currency futures are closely related to their corresponding forward rates and spot rates. Currency futures contracts are guaranteed by the exchange clearinghouse, which in turn minimizes its own credit risk by imposing margin requirements on those market participants who take a position. Currency Futures Market Speculators often sell currency futures when they expect the underlying currency to depreciate, and vice versa. 1. Contract to sell 500,000 pesos @ $.09/peso ($45,000) on June 17. April 4 2. Buy 500,000 pesos @ $.08/peso ($40,000) from the spot market. June 17 3. Sell the pesos to fulfill contract. Gain $5,000. Currency Futures Market MNCs may purchase currency futures to hedge their foreign currency payables, or sell currency futures to hedge their receivables. 1. Expect to receive 500,000 pesos. Contract to sell 500,000 pesos @ $.09/peso on June 17. April 4 2. .

• Tài chính doanh nghiệp
• Multinational financial management
• Financial management
• Lecture Multinational financial management
• Currency futures market
• Currency call options
• 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