Cross hedging in currency forward markets: a note

Article Abstract:

Cross hedging is helpful among enterprises that operate under currencies not covered by forward markets. It is used to offset exchange rate risks in currencies not covered by forward markets by applying it to other financial assets whose prices are closely related to the exchange rate of the currency where they invoice their export revenues. Cross hedging iseffective in managing risks and maintaining the profitability of an organization.

Author: Broll, Udo
Publisher: John Wiley & Sons, Inc.
Publication Name: Journal of Futures Markets
Subject: Business, general
ISSN: 0270-7314
Year: 1997
Foreign Currency Management, Analysis, Management, Usage, Futures market, Futures markets, Foreign exchange, Hedge funds

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Asymmetric hedging of the corporate terms of trade

Article Abstract:

A method of risk management called asymmetric hedging is applied to the New Zealand dairy industry and its efficacy is evaluated.

Author: Bowden, Roger, Zhu, Jennifer
Publisher: John Wiley & Sons, Inc.
Publication Name: Journal of Futures Markets
Subject: Business, general
ISSN: 0270-7314
Year: 2006
Financial management, New Zealand, Dairy Products, Evaluation, Economic aspects, Company investment, Investments, Dairy industry, Dairy products industry

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Subjects list: Methods, Hedging (Finance)
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