Description
Springer Management And Control Of Foreign Exchange Risk 1997 Edition by Laurent L. Jacque
Since I first published Management of Foreign Exchange Risk (Lexington Books 1978) financial innovation-spurred in part by exploding volatility in currency prices-has revolutionized the theory and praxis of foreign exchange risk management. Old-fashioned forward contracts have surrendered market share to currency swaps and options as well as to their perpetually multiplying derivatives. Interestingly forex derivatives now provide a low cost and highly efficient method of transferring risk from the firms that are exposed to risk but which would rather not be (i. e. risk-hedgers) to those which are not exposed but which-in exchange for a fee-would assume some exposure to risk (i. e. risk bearers). Perhaps more importantly foreign exchange risk management which was once a fairly mechanical task confmed to the international treasury function is now permeating global strategic management. Indeed since the demise of the Bretton Woods system of pegged exchange rates the cost of forex hedging instruments has fallen so dramatically that firms can readily avail themselves of hedging products which can reduce unwanted risk thereby potentially gaining a competitive advantage over rivals that do not. Management and Control of Foreign Exchange Risk has grown out of a fundamental revision of my earlier work published almost 20 years ago. In the process my thinking about risk and its mathematics has greatly benefitted from my association with John Cozzolino and Charles Tapiero. Table of contents : Introduction. 1. Determination of Spot Exchange Rates. 2. Determination of Forward Exchange Rates. 3. Currency Futures Options and Swaps. 4. Forecasting Floating Exchange Rates. 5. Forecasting Pegged Yet Adjustable Exchange Rates. 6. Accounting Exposure to Foreign Exchange Risk. 7. Economic Exposure to Foreign Exchange Risk. 8. Exchange Risks in International Trade. 9. Optimal Currency Denomination in Long Term Debt Financing. 10. Hedging Translation Exposure. 11. Exchange Rates and the International Control Conundrum. Conclusion. Index.