Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Presentation1
1.
2. Advantages of hedging
• It manage the exchange rate risk.
• It assures the amount AIFS would receive during
maturity of the contract.
• The forwards have to be executed as being
bilateral private contracts.
• The option contract is more flexible which can be
seen as a combination of covered interest
arbitrage.
• The option gives the right (but not the obligation)
to sell or purchase a currency at an agreed
exchange rate.