foreign exchange

Tag: foreign exchange

Translation Exposure

See Also: Transaction Exposure Currency Swap Exchange Traded Funds Hedge Funds Fixed Income Securities Translation Exposure Translation exposure is a type of foreign exchange risk faced by multinational corporations that have subsidiaries operating in another country. It is the risk that foreign exchange rate fluctuations will adversely affect the translation of the subsidiary’s assets and

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Transaction Exposure

See Also: Translation Exposure Currency Swap Exchange Traded Funds Hedge Funds Fixed Income Securities Transaction Exposure Definition Transaction exposure, defined as a type of foreign exchange risk faced by companies that engage in international trade, exists in any worldwide market. It is the risk that exchange rate fluctuations will change the value of a contract

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Financial Instruments

See Also: What is a Bond Required Rate of Return Return on Asset Commercial Paper Hedging Risk Histogram Financial Instruments and Securities Financial instruments are contracts that represent value. They come in many varieties. In fact, financial managers and bankers have a lot of leeway in creating and issuing financial instruments. The Securities and Exchange

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Currency Exchange Rates

See Also: Currency Swap Transaction Exposure Hot Money Exchange Traded Funds Required Rate of Return Hedge Funds Fiat Money Currency Exchange Rates An exchange rate gives the value of one currency in terms of another. An exchange rate can be computed for any two currencies. Exchange rates are typically quoted to at least four decimal

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