Management and Control of Foreign Exchange Risk

This title is printed to order. This book may have been self-published. If so, we cannot guarantee the quality of the content. In the main most books will have gone through the editing process however some may not. We therefore suggest that you be aware of this before ordering this book. If in doubt check either the author or publisher’s details as we are unable to accept any returns unless they are faulty. Please contact us if you have any questions.

This text examines the theory and practice of foreign exchange risk management. It offers a rigorous set of operational guidelines within which foreign exchange risk can be: consistently hedged both across different risk situations and over time; tightly integrated with other types of financial risk such as interest rate and commodity price risk; and managed consistently with the firm’s overall strategic plans so that the technical, financial and engineering dimensions of risk management are fully integrated with strategic management. The book starts with an in-depth discussion of the valuation of spot and forward foreign exchange rates, currency futures and options, swaps and other foreign exchange derivative products. Part Two provides a framework for generating foreign exchange rate forecasts. Assessment of a multinational corporation’s exposure to foreign exchange risk is discussed in Part Three. Finally, Part Four reviews how to eliminate or mitigate cash flow losses that may result from transaction exposure to foreign exchange risk. Each chapter is followed by case studies and problem sets. An instructor’s manual is available upon request from the publisher.