Speech - Hello my presentation is on Currency derivatives...

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Hello, my presentation is on Currency derivatives and Foreign exchange management with a case study on Daimler. I will be addressing the key concepts of forward contracts, currency futures contracts, and currency options and the way in which campanies utilise this information to protect themselves against foreign exchange exposure which are based off expectations of exchange rate movements and raw material prices. I am going to begin with just some background of the foreign exchange market. So, the foreign exchange market is a global market for the trading of currencies. It has a few very important aspects; it determines the foreign exchange rate Since currencies are always traded in pairs, the FX market doesnt actually set an absolute value of a currency but rather detrmines the relative value by setting
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the market price of one currency if paid for with another., includes all aspects of buying, selling and the exchange of currencies at either a current or determined rices. The main players in this market are usually larger international banks. When it comes to using the FX market, companies need use certain tools to hedge themselves from the currency risk. These tools are called currency derivatives. The way that you chose which curerncy derivative tool to use is the difference in risk levels and factors that affect the return. A currency derivative mainly reflects the interest spread between its currency future.The instruments are
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