Summary - Foreign exchange risk l<Tab/>Brief statement The exchange rate stated simply is the price of one currency in terms of another currency. Exchange rate can therefore be expressed in terms of the law of one price which states that "in the presence of a competitive market structure and the absence of transportation cost and other barriers to trade, identical products which are sold in different markets will sell …
showed first 75 words of 1262 total

showed last 75 words of 1262 total
…I would like to other readers. The chief reason why I recommend is that I think this article reflect an updated model to FC cash flow. According the authors, "this paper offers analytical insights into the optimal cross-hedging strategies of the firm. In particular, the results show the optimality of using options in conjunction with futures in the case of currency mismatching, even though cash flows appear to be linear" this article should be read.