Foreign Exchange Rates and Forward Contracts
Introduction
- Introduction and importance of the forex market
- Importance of foreign exchange rate quotations
- Measures for high volume transactions
Chief Topics
Foreign Exchange Rates
- Definition and importance of foreign exchange rate quotations
- Different types of quotations (bid and ask)
- Applicable currency rates
- Accuracy and presentation
- Forward rate quotations
- 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
- Payment default situations
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 on dates and their impacts
Examples of Forward Contracts
- Initial example
- Broad issues and solutions
- Effect of different dates and their differences
- Detailed explanation of each element
Risk Management
Hedging Strategies
- Currency futures
- Options as examples
- Intrinsic value of hedging
- Common techniques used for hedging
Types of Hedging
- Money market hedging
- Foreign currency borrowing and investment
Practical Exercises
- Case study on forward rates
- Examples of currency options and their billings
- Market mod dealing
Techniques for Cash Management
Fund Management
- Intercompany financing
- Use of subordinate funds
- Fund transfer
- Investment in foreign currency
- When and how much funds a company needs
- Rehabilitation of funds
Accent Account
Pillars
- Use of bank account
- Importance of designated accounts
Variable Example
- Equity and global market for corporations
Practical Sense
Activities
- Case study related to marketing
- Company experiences
- How and how much they comply
Conclusion
- Recapitulation of all concepts
- Decisions and evaluations
- Recapitulation of key points
ЁЯЩВ The entire subject is complete!