In The Business About Hedge Risk Analysis Uni Sa Assignment

815 words - 4 pages

Our group identified that foreign exchange risk and credit risk is the main two risk the client facing from the potential payoff of investment. Structured financial products are the example of portfolio investments included fixed income products and the options. Fixed income products reduce the risk of losing money. Option investments can increase the potential growth of earnings. Foreign exchange risk is the major risk in this case, the company on input and borrowing in GBP (UK). The risk exists when convert GBP revenues to Australian dollars. Moreover, the revenues will change before received in the currency, it is necessity that to exchange the foreign currency for AUD when dealing the revenues from the investment and other receivable, if the value of GBP rise is mean the values of Australia dollars is decline. This is an inverse ratio. In the result, the cost of foreign currency will increase. Meanwhile, the revenues will decrease.
Furthermore, structured products are made secure or safe debt from investment banks. It is one risk that the counterparty unable or unwilling to meet their commitments about the trading or other transaction cause the company incur loss. (Spuchľáková, E., Valašková, K. and Adamko, P. 2018). The portfolio risk not only make up by internal factor, also the external factors. The external factors, such as the government policies and trade restrictions, all of them are company can’t not control part and it is easily to make company have big lost. The internal factors may the deficiencies in appraisal of borrowers’ financial position (Spuchľáková, E., Valašková, K. and Adamko, P. 2018)…That why the credit risk also be existed.
To mitigate the losses from exchange rate fluctuations, the company would adopt either a cash flow hedge or a fair value hedge strategy based on the type of commodity being paid for. In addition, take option and forward contracts also are the good selection.
Firstly, a cash flow hedge or a fair value hedge strategy, where the company owes payables from asset purchases and the payments are one-off, the fair value hedge would come in handy. This may be where an asset is bought through a purchase agreement from another country and payment is done at a later date.
Secondly, client may take an option. An option is stated at a price that is a bit lower than the current price. If the investor think the price will fall, then they should buy puts option or sell calls. On the other hand, sell put options or buy calls if think the price will rise in the future. Also,...

Other Essays On in the business about hedge risk analysis - UniSA - assignment

Report on the Mintzberg's article in the Harvard Business Review about the fall and the rise of strategic planning

464 words - 2 pages ) planning is controlling the future; (3) planning is decision making; (4) planning is integrated decision making; (5) planning is a formalized procedure to produce an articulated result, in the form of an integrated system of decisions.Within the fifth definition lies the root, Mintzberg suggests, for the emergence of a sense of rationality about planning. In this case, rational planning implies an ability to (1) know attributes of the future; (2

Business analysis and marketing strategy - Canine behaviour - Essay Assignment

4203 words - 17 pages Marketing strategies Page 6 3.2 The 4 P’s of marketing Page 6 4.0 Conclusion Page 9 5.0 References Page 10 List of tables Table 1: SWOT analysis of the business Page 3 Table 2: PESTLE analysis of the business Page 4 Introduction When setting up a business or expanding a current business it is important to conduct some research in order to gain an understanding of the opportunities available and the risks which may effect the business (Spaeder,2016

Catcher in the rye Chapter analysis - Mather - Assignment

507 words - 3 pages Name: ___________________________ Chapters 7 - 11  Catcher in the Rye - Week of 11/26 - 11/30/2018 Period: _______  Vocabulary Words  unanimous​​ (adj.) all in agreement  snub​​ (v.) to slight; behave coldly toward  conscientious​​ (adj.) careful; honest;  painstaking  nonchalant​​ (adj.) seeming to be coolly  unconcerned or indifferent  incognito​​ (adj.) unknown  bourgeois​​ (adj.) middle-class  putrid​​ (adj.) rotten and disgusting  lavish

“What is the point of learning about risk and return if I am planning to be an accountant”. - afin253 - essay

1095 words - 5 pages information about assets, liabilities or capital. Therefore, they could get involve in forming the long term strategic goals for the growth of the organization. Having deep understanding about the risk and return for business could help accountants better analyzing the conditions which their companies are currently in the drive an appropriate strategy for future profit. In order to do this, an accountant has to brainstorm potential risk areas

An essay discussing the increased risk of asthma in obese people

432 words - 2 pages culture has also become less active. With the increase of video games and computer technology, playing video games has taken precedence over physical activity. Children are more apt to ask for a new computer than a bicycle. This decrease in physical activity, also aids the body to store fat rather than burn it off.Asthmatics who manage their disease with steroid medications, either through inhalers or pill form, run the risk of retaining fluids, which leads to becoming overweight. With added weight it becomes difficult for the asthmatic to stay physically active. Often times even a short walk can bring about an asthma episode.

This is an assignment about the vocabulary terms in economics chapter 11 - Economy 101 - assignment

1147 words - 5 pages construction companies that build homes. Risk: A situation in which the outcome is uncertain 401K plan: A tax deferred investment and savings plan that acts as a personal pension fund for employees. Money withheld from one’s paycheck reduces the taxable income and is invested in mutual funds. Income taxes are paid on the money as it is withdrawn. Employers will often time match a percentage of what the employee pays to the fund. Coupon: The stated

Rhetorical Analysis about the religious culture in Utah and how it affects the youth community - English 101 - Analysis

1043 words - 5 pages significant part that understates the issue discussed. The author shares at the beginning of the article, the data collected in the past years about the suicide rate among the LGBT youth and the connection between the religious culture in Utah and right after Hatch includes a popular story from a social media influencer that addresses the relation between the LDS community and the LGBT suicide rates. As a result, the audience is persuaded to discard the

Great Gatsby book analysis about how lies created everyone in the books death. - Palmdale High School English - Rhetorical Analysis

449 words - 2 pages characterization, dialogue, tone. In the beginning Jay Gatsby starts but introducing himself, on a wrong note. He starts off with lies about his background but why? “My family have been prominent well-to-do people in this Middle Western city for three generations”(Fitzgerald2), it's clear when someone is shown in a book, their background is eventually going to come out; there's no need to lie about it.”I am the son of some wealthy people in the

Role of the budget for Nairobi African Market, a local business in Moline Illinois - Liberty University BUSI730 - Assignment

1745 words - 7 pages Running head: REAL WORLD APPLICATION ASSIGNMENT 2 REAL-WORLD APPLICATION PAPER Faith Wanjiku Hansen Real-World Application Assignment 2 Liberty University School of Business 19th July 2019 The Role of a Budget The role of a budget is to ensure that all the plans for resources and acquisitions are provided for and the expectation of the business are met within a said period. A budget is essential because it is essential to a company in analyzing

Describe a merger or acquisition that has taken place in the last 3 years. - International business - assignment

1496 words - 6 pages American College Dublin Course: Corporate Finance Name: Liam Rogers Student Number: 2065259 Table of contents: · History of companies. · Reasons for the merger. · Reaction of Stakeholders/Competitors. · Finance/ the Deal. · Conclusion/Will this be a success? Assignment: Describe a merger or acquisition that has taken place in the last 3 years. History of Microsoft: Microsoft is a multinational computer technology corporation. The history of

Effects on globaization in business - Eagle Gate/Organizational Behavior - Assignment

509 words - 3 pages Writing Assignment 1 2 Company Culture Stacie J. Rollins Eagle Gate College MGT140-A Organizational Behavior 0818 Introduction To start my paper, I’m going to talk about what effects dose the globalization of business have on a company’s culture. I will then talk about, what happens when a company starts to grow and is affected by the international world. I will lastly give my thoughts how an organization with strong identity compete with the

Similar Papers

Teaching Strategies In A Multicultural Setting Unisa Assignment

1748 words - 7 pages Student number: 46365265 Name: Nabeela Paruk EDMHODR Assignment 1: 639504 Question 1: Teaching strategies and the way in which it is used in a multicultural setting 2 Table of Contents Introduction ...................................................................................................................................... 3 Teaching Strategies

Options For Progression In The Performing Arts Industry Business Assignment

2008 words - 9 pages schools in the world. Institutional reputation Established in 1935 The GSA brand name gives our students immediate visibility in the entertainment industry and a reputation for quality and professionalism. We’re passionate about constantly upholding and developing this reputation, ensuring our students have the technical skills they need whilst also encouraging them to develop their artistic integrity, entrepreneurism and creativity to succeed as

The Role Of Indigenous People And Traditional Ecological Knowledge In Land, Water Unisa Essay

2224 words - 9 pages the intricate interactions between them, make it to the future (KINRM, 2013). It is about bout saving life on Earth in all its makes and keeping natural ecosystems healthy and running (KINRM, 2013). Research and studies have uncovered some of the strategies that the Indigenous Australians use to conserve the Land. Currently, there’s the Indigenous Protected Areas (IPA) which is an Aboriginal owned land or sea where habitual owners sign up

Literary Analysis About The Metaphor In Mother To Son Efsc Literary Analysis

1025 words - 5 pages . Every child has to learn how to socialize with others and learn how to deal with being bullied, they have to overcome this to move along in life and make their way up the staircase. As kids socialize the make relationships with people. They form bonds and learn how to love. The relationships one forms with others mean so much to people. At a certain age people lose someone they care about and having to deal with that for the first time can be very