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CROSS-HEDGING OF EXCHANGE RATE RISKS: A NOTE

✍ Scribed by HARALD L. BATTERMANN; UDO BROLL; KIT PONG WONG


Book ID
111102381
Publisher
John Wiley and Sons
Year
2006
Tongue
English
Weight
64 KB
Volume
57
Category
Article
ISSN
1352-4739

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In an intertemporal model the impact of exchange rate risk on an international firm is studied under the assumption that no forward markets are existing in the foreign currency. However, there is a forward traded financial asset, whose spot price is highly correlated with the random spot exchange ra