Management and Control of Foreign Exchange Risk (Hardcover)

Laurent L. Jacque

ISBN 10: 0792396820 / ISBN 13: 9780792396826

Editore: Kluwer Academic Publishers, Dordrecht, 1996

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Hardcover. Examining the theory and practice of foreign exchange risk management, this work offers a rigorous set of operational guidelines within which foreign exchange risk can be: hedged consistently both across different risk situations and over time; integrated tightly 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 engineering dimensions of risk management are integrated fully 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 II provides a framework for generating foreign exchange rate forecasts. Assessment of a multinational corporation's exposure to foreign exchange risk is discussed in Part III. Finally, Part IV 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. Since I first published Management of Foreign Exchange Risk (Lexington Books, 1978), financial innovation-spurred, in part, by exploding volatility in currency prices-has revolutionized the theory and praxis of foreign exchange risk management. Shipping may be from multiple locations in the US or from the UK, depending on stock availability.

Codice articolo 9780792396826

Dati bibliografici

• Titolo: Management and Control of Foreign Exchange Risk (Hardcover)
• Editore: Kluwer Academic Publishers, Dordrecht
• Data di pubblicazione: 1996
• Lingua: Inglese
• ISBN 10: 0792396820
• ISBN 13: 9780792396826
• Rilegatura: Hardcover
• Condizione: new

Descrizione articolo

Riassunto

Since I first published Management of Foreign Exchange Risk (Lexington Books, 1978), financial innovation-spurred, in part, by exploding volatility in currency prices-has revolutionized the theory and praxis of foreign exchange risk management. Old-fashioned forward contracts have surrendered market share to currency swaps and options as well as to their perpetually multiplying derivatives. Interestingly, forex derivatives now provide a low cost and highly efficient method of transferring risk from the firms that are exposed to risk but which would rather not be (i. e. , risk-hedgers) to those which are not exposed but which-in exchange for a fee-would assume some exposure to risk (i. e. , risk­ bearers). Perhaps more importantly, foreign exchange risk management, which was once a fairly mechanical task confmed to the international treasury function, is now permeating global strategic management. Indeed, since the demise of the Bretton Woods system of pegged exchange rates, the cost of forex hedging instruments has fallen so dramatically that firms can readily avail themselves of hedging products which can reduce unwanted risk, thereby potentially gaining a competitive advantage over rivals that do not. Management and Control of Foreign Exchange Risk has grown out of a fundamental revision of my earlier work published almost 20 years ago. In the process, my thinking about risk and its mathematics has greatly benefitted from my association with John Cozzolino and Charles Tapiero.

Informazioni sull?autore

Laurent L. Jacque is a Professor of International Finance and Banking and Director of the Program of International Business Relations at the Fletcher School (Tufts University). He is also Professor of Finance and International Business at the HEC School of Management (France).