The writer is very fast, professional and responded to the review request fast also. Thank you.
You will submit your Foreign Exchange Risk Management Analysis. Your analysis should include foreign exchange risk net exposure and the tools or techniques your chosen company currently uses to mitigate the risk. In Milestone Two, you will also analyze the company’s hedging characteristics and other potential risks that might arise from this imperfect hedge.
Specifically, the following critical elements must be addressed:
Foreign Exchange Risk Management Analysis: Analyze the firm’s transactions, its foreign exchange rate risk exposure, and the tools the firm currently uses to mitigate the risk.
a) Explain the firm’s specific transactions, which are the accounts payable and accounts receivable, and how these transactions expose the firm to foreign exchange rate risk. Some firms could be exposed to both of the accounts because they import raw materials from foreign countries, add value to the product, and then re-export the product to other foreign countries. However, the net exposure must be only one account.
b) Identify the tools the firm currently uses in mitigating the foreign exchange rate risk. Occasionally, firms utilize more than one tool to hedge the risk. Some examples are using foreign debt to hedge the foreign income, or using derivatives such as currency swaps, futures, forwards, or options.
c) However, most of the time, the company does not fully hedge its exposure to the foreign currency. You must explain the percentage hedge of its exposure as well as the hedging time. Then, you must provide the potential risk to which the company could still be exposed from the foreign exchange rate.
Guidelines for Submission: Submitted as a two- to three-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins; use at least three scholarly sources; and be cited in APA format.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more