Foreign Exchange Rate and Forward Contracts

Introduction

• Introduction and importance of the Forex market
• Importance of foreign exchange rate quotations
• Measure of high volume transactions

Chief Topics

Foreign Exchange Rate

• Definition and importance of foreign exchange rate quotations
• Different types of quotations (bid and ask)
• Applied currency rates
• Accuracy and presentation
• Forward rate quotation
  • Importance of premiums and discounts
  • Identification of premium and discount calculations

Forward Contracts

Importance of Forward Contracts

• Role in risk management
• Forward rates contracted by the company
• Payment terms
• Situation of non-payment

Key Points

• Calculation of forward rates
  • Difference between forward rate and spot rate
  • Calculation of forward premium/discount
• Forward contract date and maturity date
• Changes at the date and their impact

Examples of Forward Contracts

• Initial example
• Comprehensive issues and solutions
• Impact of different dates and their differences
• Detailed explanation of each element

Risk Management

Hedging Strategies

• Currency futures
• Options as examples
• Physical value of hedging
• Commonly used techniques for hedging

Types of Hedging

• Money market hedging
  • Foreign currency borrowing and investment

Practical Exercises

• Forward rates case study
• Examples of currency options and their bills
• Market mud dealing

Cash Management Techniques

Funds Management

• Intercompany financing
• Use of subordinate funds
• Funds migration
• Investment in foreign currency
• When and how much funds the company needs
• Rehabilitation of funds

Excel Account

Bank

• Use of bank account
• Importance of dedicated accounts

Variable Examples

• Equity and global market for the corporation

Practical Sense

Activities

• Marketing related case studies
• Company experiences
• How many are played out and how

Conclusion

• Recap of all concepts
• Decisions and evaluations
• Recap of key points

🙂 The entire subject is complete!