Currency Futures and Options Markets.st - Currency Futures...

This preview shows page 1 - 5 out of 19 pages.

The preview shows page 3 - 5 out of 19 pages.
Currency Futures and OptionsMarketsInternational FinanceDr. A. DeMaskey
Learning ObjectivesWhat are currency futures contacts?Howare they quoted, valued, and used forhedging purposes?How do currency futures differ fromcurrency forwards?What are currency option contracts?Howare they quoted, valued, and used forhedging purposes?
Foreign Currency DerivativesFinancial management in the 21st century needs toconsider the use of financial derivativesThese derivatives, so named because their valuesare derived from the underlying asset, are apowerful tool used for two distinct managementobjectives:SpeculationHedging
Foreign Currency DerivativesIn the wrong hands, derivatives can cause acorporation to collapse (Barings, Allied IrishBank), but used wisely they allow a financialmanager the ability to plan cash flowsThe financial manager must first understand thebasics of the structure and pricing of these tools.The derivatives that will be discussed are:Foreign Currency FuturesForeign Currency Options

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 19 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Zhang
Tags
Hedging, International Finance, Options, futures hedge, Chicago Board Options Exchange, Options Clearing Corporation

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture