The Management And Control Of Foreign Exchange Risk

The book examines the theory and practice of foreign exchange risk management.It offers a rigorous set of operational guidelines within which foreignexchange ri... » 

The book examines the theory and practice of foreign exchange risk management.It offers a rigorous set of operational guidelines within which foreignexchange risk can beul liConsistently hedged both across different risksituations and over time li liTightly integrated with other types offinancial risk such as interest rate and commodity price risk and liliManaged consistently with the firms overall strategic plans so that thetechnical financial engineering dimensions of risk management are fullyintegrated with strategic management. li ul The book starts with an indepthdiscussion of the valuation of spot and forward foreign exchange ratescurrency futures and options swaps and other foreign exchange derivativeproducts. Part II provides a framework for generating foreign exchange rateforecasts. Assessment of a multinational corporations exposure to foreignexchange risk is discussed in Part III. Finally Part IV reviews how toeliminate or mitigate cash flow losses that may result from transactionexposure to foreign exchange risk. br Each chapter is followed by case studiesand problem sets. An instructors manual is available upon request from thepublisher. «