Exchange Rate Risk, Export and Hedging
✍
Udo Broll
📂
Article
📅
1997
🏛
John Wiley and Sons
🌐
English
⚖ 81 KB
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