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Financial Derivatives

P/F/511. Dissertation. Hedging financial risks: theory and case study

WORDS:
19500
DATE:
2006
PRICE:
199.99 GBP

The dissertation investigates the issue of risk management in the highly volatile foreign exchange market addressing the problems of transaction exposure (TE) and investigating the TE and the use of hedging instruments in a Danish multinational enterprise IC Companys A/S. Financial and academic literature is reviewed touching on the theory of exchange rates, inflation and interest rates, the classifications of exchange rate exposures, TE management systems, transaction and economic risks, etc. Qualitative research approach is used combining the methods of secondary data analysis and a case study based on primary data (interviews) analysis. Conclusions are made about the applicability of the theoretical framework to financial risk management in the chosen company.

 

KEYWORDS: Dissertation, foreign exchange, exchange rates, risk, multinational, transaction expos,

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