Discussion Many firms attempt to manage their foreign exchange exposure through hedging. Hedging requires a firm to take a position—an asset, a contract, or a derivative—the value of which will rise o
Discussion Many firms attempt to manage their foreign exchange exposure through hedging. Hedging requires a firm to take a position—an asset, a contract, or a derivative—the value of which will rise or fall in a manner that counters the fall or rise in the value of an existing position—the exposure. Hedging protects the owner of … Read more