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If a business is exposed to a risk of any kind (interest rates, currency fluctuation, commodity prices, etc.) they can partially offset that risk by hedging. In hedging they would enter into a contract whose value will fluctuate in the opposite direction of their business risk position.
If they build things from wood, they may want to buy wood future contracts. If the price of wood goes up their business costs rise but that should be partly offset by a profit on their futures contract.
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∙ 12y ago
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What are Hedging tools in forex risk management?
Analyze risk, Determine risk tolerance, Determine forex hedging etc.
What is the importance of credit management?
Credit management is vitally importance for a successful financial future. Good credit can ensure better loan terms, higher credit limits, and greater availability to financial products.
How can you apply financial management strategy?
what is Financial Management Strategy
Define public financial management?
what is financial Management reporting
Who makes decisions on financial management issues?
Financial Management Board
What are the advantages and disadvantages of hedging?
Hedging as a financial management startegy, minimises the volatility of a particular financial derivative by holding opposing positions. On the other hand hedging has the tendency of minimising profits associated with a particular investment.
What are Hedging tools in forex risk management?
Analyze risk, Determine risk tolerance, Determine forex hedging etc.
What has the author Jeff L McKinzie written?
Jeff L. McKinzie has written: 'Hedging financial instruments' -- subject(s): Hedging (Finance)
Concept of hedging?
The concept of hedging is to reduce the risk of financial loss. Hedging originated out of the 19th century commodity markets. A hedge can include stocks, exchange-traded funds, insurance, forward contracts, swaps, and options.
What is the importance of treasury management under harsh economic conditions?
Treasury management involves the process of managing the cash, investments and other financial assets of the business. The goal of these activities is to optimize current and medium-term liquidity and make solid financial decisions involving invested and investable assets. Treasury management also includes hedging where needed to reduce financial risk exposure. Treasury management's functions include: - Cash Flow Management - Float - Relationships and Risks - Information Sharing
What is the importance of credit management?
Credit management is vitally importance for a successful financial future. Good credit can ensure better loan terms, higher credit limits, and greater availability to financial products.
What has the author Frank Skinner written?
Frank Skinner has written: 'Pricing and hedging interest and credit risk sensitive instruments' -- subject(s): Credit, Hedging (Finance), Interest rates, Management, Mathematical models, Risk management
What has the author Steffen W Tolle written?
Steffen W. Tolle has written: 'Dynamische Hedging-Strategien mit SMI-Futures' -- subject(s): Hedging (Finance), Financial futures
Where can I learn financial management?
As per my suggestion, you can learn financial management from IIQF- the Indian Institute of Quantitative Finance. The program offered is intended for students seeking comprehensive technical knowledge of vanilla and exotic derivatives pricing, hedging, trading and investment strategies, and portfolio management in equity, currency, interest rates, credit, and mortgages. They have 7 monthly weekend schedules so the working professionals also enroll in the course.
What has the author Torben Juul Andersen written?
Torben Juul Andersen has written: 'Currency and interest rate hedging' -- subject(s): Financial futures, Foreign exchange futures, Forward exchange, Hedging (Finance), Interest rate futures, Option (Contract), Options (Finance) 'Interest raterisk management' -- subject(s): Forecasting, Interest rates, Investments
What is the financial management function?
what is financial management function?
What is function financial management?
what is financial management function?
