Identify and discuss eight internal hedging techniques that might be used by a firm to minimise FX exposures.

Posted: January 10th, 2022

Identify and discuss eight internal hedging techniques that might be used by a firm to minimise FX exposures. Include in your discussion the advantages and disadvantages associated with each type of technique. (LO 17.4)

Explain how foreign currency standard deviations and currency correlations may assist in assessing the risk associated with a company’s FX exposures. In your answer consider the strengths and weaknesses of these measures. (LO 17.2)