Define foreign exchange rate risk, Corporate Finance

Question:

(a) Define foreign exchange rate risk and the three different type of exchange rate risks. Illustrate the three types of risks with examples.

(b) Identify and outline the different internal and external methods of risk management techniques for managing foreign exchange rate risks.

(c) Compare and contrast in details a forward contract and a futures contract.

(d) Outline and exemplify when it is feasible to use a futures contract compared to an option.

Posted Date: 11/16/2013 6:44:29 AM | Location : United States







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