Sir
a) FRA, IRG, interest rate futures and interest rate options can be applied when company is borrowing as well as depositing rather than just borrowing. Correct?
b) Similarly, forward exchange contract, future contracts and currency options can be applied when company is borrowing as well as depositing rather than just borrowing. Correct?
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Foreign exchange risk management
7y ago#1a) Correct - as I explaining my lectures.
b) Foreign exchange methods are for hedging exchange rate risk and are nothing to do with borrowing or depositing.
B) Sorry I mean that forward exchange contract, future contracts and currency options can be applied for receipts as well as payments, correct?
7y ago#3Yes. Please do watch the lectures!
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