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Este Cmap, tiene informaciĆ³n relacionada con: Cobertura financiera, Forwards Exists Short covering, CHAPTER 15: FINANCIAL COVERAGE Who benefits from the coverage? Company owners, CHAPTER 15: FINANCIAL COVERAGE best known hedging instruments They are OTC options, CHAPTER 15: FINANCIAL COVERAGE best known hedging instruments They are The stock options, CHAPTER 15: FINANCIAL COVERAGE best known hedging instruments They are Forwards, Bankruptcy costs ???? the variability of cash flows can lead to missed payments, In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected. imperfections that justify the exchange risk management. Transaction costs, In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected. imperfections that justify the exchange risk management. Bankruptcy costs, CHAPTER 15: FINANCIAL COVERAGE best known hedging instruments They are Synthetic forwards, In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected. The correct use of hedging reduces the variability of cash flows of the company, Forwards Exists Long coverage, CHAPTER 15: FINANCIAL COVERAGE ???? In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected., In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected. imperfections that justify the exchange risk management. asymmetric information, CHAPTER 15: FINANCIAL COVERAGE best known hedging instruments They are Fx swaps, Transaction costs ???? The cost of the coverage is much lower for companies to individual shareholders, asymmetric information ???? Business managers can assess the exposure to currency risk much more accurately than investors., In the case of accounts receivable in foreign currency (asset), the risk is that the time of receiving the cash flow, the spot rate will be lower than expected. In the case of foreign accounts payable (liabilities) currency risk is that the exchange rate will be higher than expected. imperfections that justify the exchange risk management. Progressive corporate tax, Progressive corporate tax ???? When the utility rises as a result of foreign exchange gains, the company pays higher taxes