Business & Economics, Economics

Management and Control of Foreign Exchange Risk

Name: Management and Control of Foreign Exchange Risk
Author: Laurent L. Jacque
ISBN: 9780792396826

by Laurent L. Jacque

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Synopsis

The book examines the theory and practice of foreign exchange risk management. It offers a rigorous set of operational guidelines within which foreign exchange risk can be:

Consistently hedged both across different risk situations and over time;
Tightly integrated with other types of financial risk such as interest rate and commodity price risk; and
Managed consistently with the firm's overall strategic plans so that the technical, financial engineering dimensions of risk management are fully integrated with strategic management.

The book starts with an in-depth discussion of the valuation of spot and forward foreign exchange rates, currency futures and options, swaps and other foreign exchange derivative products. Part II provides a framework for generating foreign exchange rate forecasts. Assessment of a multinational corporation's exposure to foreign exchange risk is discussed in Part III. Finally, Part IV reviews how to eliminate or mitigate cash flow losses that may result from transaction exposure to foreign exchange risk.
Each chapter is followed by case studies and problem sets. An instructor's manual is available upon request from the publisher.

Booknews

Examines the theory and practice of foreign exchange risk management, offering operational guidelines. Part I discusses the valuation of spot and forward foreign exchange rates, currency futures and options, and swaps and other foreign exchange rate forecasts. Part II provides a framework for generating foreign exchange rate forecasts, and Part III discusses assessment of a multinational corporation's exposure to foreign exchange risk. Part IV reviews how to mitigate cash flow losses resulting from exposure to foreign exchange risk. Includes chapter problems and cases. For graduate students in business. Annotation c. by Book News, Inc., Portland, Or.

About the Author, Laurent L. Jacque

Laurent L. Jacque is a Professor of International Finance and Banking and Director of the Program of International Business Relations at the Fletcher School (Tufts University). He is also Professor of Finance and International Business at the HEC School of Management (France).