A PROJECT REPORT ON STUDY OF CURRENCY MARKET FOR ANGEL BROKING MASTER OF MANAGEMENT STUDIES (MMS) UNIVERSITY OF MUMBAI SUBMITTED TO SINHGAD INSTITUTE OF BUSINESS MANAGEMENT CHANDIVALI UNDER THE GUIDANCE OF PROF. ANOOP WAGHMARE SUBMITTED BY HUSSEINI BABU MULLA BATCH-2012-14 ROLL NO-114 SPECIALISATION-FINANCE ------------------------------------------------- CERTIFICATE------------------------------------------------- -------------------------------------------------
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1 Hedging Strategies Using Futures Chapter 3 2 Long & Short Hedges • A long futures hedge is appropriate when you know you will purchase an asset in the future and want to lock in the price • A short futures hedge is appropriate when you know you will sell an asset in the future & want to lock in the price • A short hedge is also appropriate if you currently own the asset and want to be protected against price fluctuations 3 Arguments in Favor of Hedging • Companies should
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future to be able to lock in the price of diesel fuel for future purchases. 2. What problems could the use of heating oil futures for hedging create for J&L? Note: I assume this question is asking about heating oil specifically not futures in general. As heating oil is not the same product as diesel fuel‚ therefore there could still be some exposure (risk) for J&L. There has been a historical correlation between heating oil prices and diesel fuel prices‚ but this might not be true for the
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Basket Of currencies: It’s a selective group of currencies ( Dollar‚ Yen‚ …) in which the average is used as a measure of the value‚ and its commonly used to avoid the risk of any currency fluctuating. An Example of pegging to a basket of currencies is Kuwait: In May of 2007 Kuwait dropped the peg to U.S dollar and pegged to a basket of currencies in the beginning Kuwait inflation rate rose from 0.69% in the second quarter of 2007 to 4.2% in the first quarter of 2008. Overall‚ the increase in
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Currency war From Wikipedia‚ the free encyclopedia Currency war involves states competing against each other on the foreign exchange markets to achieve a relatively low exchange rate‚ in order to boost their exports. Currency war‚ also known as Competitive devaluation‚ is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their home currency‚ so as to help their domestic industry. Competitive devaluation has been rare
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payment. John Gunn indicated that there would be no difficulty for Southeastern to arrange the pound loan for Dozier through its correspondent bank in London. He believed that such a loan would be at 1.5% above the U.K. prime rate. Dozier Hedging Alternatives Forward Market Hedge: Dozier would purchase U.S. dollars under a forward contract. The contract would obligate Dozier to pay £1‚057‚500 in exchange for £1‚057‚500 x 1.4198 $/£ = $1‚501‚438.50 assuming the transaction was at the
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analyzing two specific hedging decisions by General Motors. Describes General Motors’ corporate hedging policies‚ its risk management structure‚ and how accounting rules impact hedging decisions. The company is considering deviations from prescribed policies because of two significant exposures: an exposure to the Canadian dollar with adverse accounting consequences and an exposure to the Argentinean currency when devaluation is widely anticipated. Students must evaluate the risks General Motors faces
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Fuel Hedging for Delta Airlines Delta Air Lines • A major United States Airline • Results of operations are impacted by changes in • Aircraft fuel prices • Interest rates • Foreign currency exchange rates • Derivative contracts Derivative Type Hedged Risk Classification of Gains and Losses Fuel hedge contracts Interest rate contracts Foreign currency exchange contracts Increases in jet fuel prices Increases in interest rates Fluctuations in foreign currency exchange rates Aircraft fuel and
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title of the program with a welcome. 2. A description of how the program will be used. 3. User has 5 currencies (Canadian dollars‚ Mexican Pesos‚ English Pounds‚ Yen‚ and Francs) to choose from to convert to dollar amount or vice versa. 4. Program displays the dollar amount the chosen currency is equivalent to. 5. User has an option to quit the program or restart any with any other currency to convert. Input-Process-Output Chart Complete the following Input-Process-Output chart for the application
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3.1 Hedging strategy in the literature: conventional understanding as risk minimization Introduced in the introduction in this chapter‚ I will first review existing literature on international relations theorists in narrating hedging strategy. Linking dictionary definition on the word hedge‚ hedging strategy means to prevent any loss in state’s pursuit of national interests from making strategic adversary in an uncertain international system by presenting overtly the strategic indeterminacy. Hedging
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