explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
Factor Affecting exchange rate and Theories of exchange rate Jatin Goyal
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It explains the following topics
Factor Affecting the exchange rate
CURRENCY DEPRECIATION VS.CURRENCY APPRECIATION
Foreign exchange
Theories of exchange rate
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
Factor Affecting exchange rate and Theories of exchange rate Jatin Goyal
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It explains the following topics
Factor Affecting the exchange rate
CURRENCY DEPRECIATION VS.CURRENCY APPRECIATION
Foreign exchange
Theories of exchange rate
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance
here we are explaining exchange rate movements, how the equilibrium exchange rate is determined, what kind of factor that affect the equilibrium exchange rate
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
how can I sell pi coins after successfully completing KYCDOT TECH
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Pi coins is not launched yet in any exchange đą this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAYÂ you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers âĽď¸
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
⢠The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
⢠The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
⢠The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
⢠Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and assetâs value is determined by companyâs performance. There are two major types of equity securities: common stock and preferred stock.
ď Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the companyâs board of director or the business decisions to be made.
ď Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for companyâs growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
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The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The secret way to sell pi coins effortlessly.DOT TECH
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Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
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Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
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The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ â 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Exploring Abhay Bhutadaâs Views After Poonawalla Fincorpâs Collaboration With...beulahfernandes8
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The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to swap pi coins to foreign currency withdrawable.DOT TECH
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As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
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t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
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The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new productâit signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
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The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a âRoaring Twentiesâ? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. governmentâs aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
âIn order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,â says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
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There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
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Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Chapter Objectives
⢠To discuss the relevance of an MNCâs exposure to exchange rate risk;
⢠To explain how transaction exposure can be measured;
⢠To explain how economic exposure can be measured; and
⢠To explain how translation exposure can be measured.
3. Is Exchange Rate Risk Relevant?
Purchasing Power Parity Argument
ďť Exchange rate movements will be matched by price movements.
ďźPPP does not necessarily hold.
4. Is Exchange Rate Risk Relevant?
The Investor Hedge Argument
ďť MNC shareholders can hedge against exchange rate fluctuations on their
own.
ďźThe investors may not have complete information on corporate exposure.
They may not have the capabilities to correctly insulate their individual
exposure too.
5. Is Exchange Rate Risk Relevant?
Currency Diversification Argument
ďť An MNC that is well diversified should not be affected by exchange rate
movements because of offsetting effects.
ďźThis is a naive presumption.
6. Is Exchange Rate Risk Relevant?
Stakeholder Diversification Argument
ďť Well diversified stakeholders will be somewhat insulated against losses
experienced by an MNC due to exchange rate risk.
ďźMNCs may be affected in the same way because of exchange rate risk.
7. Is Exchange Rate Risk Relevant?
Response from MNCs
⢠Many MNCs have attempted to stabilize their earnings with hedging
strategies, which confirms the view that exchange rate risk is
relevant.
8. Types of Exposure
⢠Although exchange rates cannot be forecasted with perfect accuracy,
firms can at least measure their exposure to exchange rate
fluctuations.
⢠Exposure to exchange rate fluctuations comes in three forms:
⢠Transaction exposure
⢠Economic exposure
⢠Translation exposure
9. Transaction Exposure
⢠The degree to which the value of future cash transactions can be
affected by exchange rate fluctuations is referred to as transaction
exposure.
⢠To measure transaction exposure:
ď project the net amount of inflows or outflows in each foreign currency,
and
ď determine the overall risk of exposure to those currencies.
10. Transaction Exposure
⢠MNCs can usually anticipate foreign cash flows for an upcoming
short-term period with reasonable accuracy.
⢠After the consolidated net currency flows for the entire MNC has
been determined, each net flow is converted into either a point
estimate or a range of a chosen currency, so as to standardize the
exposure assessment for each currency.
11. Transaction Exposure
⢠An MNCâs overall exposure can be assessed by considering each
currency position together with the currencyâs variability and the
correlations among the currencies.
⢠The standard deviation statistic on historical data serves as one
measure of currency variability. Note that currency variability levels
may change over time.
12. Transaction Exposure
⢠The correlations among currency movements can be measured by
their correlation coefficients, which indicate the degree to which two
currencies move in relation to each other.
coefficient
perfect positive correlation 1.00
no correlation 0.00
perfect negative correlation -1.00
14. Transaction Exposure
⢠The point in considering correlations is to detect positions that could
somewhat offset each other.
⢠For example, if currencies X and Y are highly correlated, the
exposures of a net X inflow and a net Y outflow will offset each other
to a certain degree.
⢠Note that the corrrelations among currencies may change over time.
16. Transaction Exposure
⢠A related method, the value-at-risk (VAR) method, incorporates
currency volatility and correlations to determine the potential
maximum one-day loss.
⢠Historical data is used to determine the potential one-day decline in
a particular currency. This decline is then applied to the net cash
flows in that currency.
17. Economic Exposure
⢠Economic exposure refers to the degree to which a firmâs present
value of future cash flows can be influenced by exchange rate
fluctuations.
⢠Cash flows that do not require conversion of currencies do not reflect
transaction exposure. Yet, these cash flows may also be influenced
significantly by exchange rate movements.
18. Economic Exposure
Transactions that Influence the
Firmâs Cash Inflows Local Currency
Appreciates
Local Currency
Depreciates
Local sales (relative to foreign
competition in local markets)
Firmâs exports denominated in
local currency
Firmâs exports denominated in
foreign currency
Interest received from foreign
investments
Decrease
Decrease
Decrease
Decrease
Increase
Increase
Increase
Increase
ď˛
Impact on Transactions
ď˛
ď˛Transactions reflecting transaction exposure.
19. Economic Exposure
Transactions that Influence the
Firmâs Cash Outflows Local Currency
Appreciates
Local Currency
Depreciates
ď˛
Impact on Transactions
ď˛
ď˛Transactions reflecting transaction exposure.
Firmâs imported supplies
denominated in local currency
Firmâs imported supplies
denominated in foreign currency
Interest owed on foreign funds
borrowed
No Change
Decrease
Decrease
No Change
Increase
Increase
20. Economic Exposure
⢠Even purely domestic firms may be affected by economic exposure if
there is foreign competition within the local markets.
⢠MNCs are likely to be much more exposed to exchange rate
fluctuations. The impact varies across MNCs according to their
individual operating characteristics and net currency positions.
21. Economic Exposure
⢠One measure of economic exposure involves classifying the firmâs
cash flows into income statement items, and then reviewing how the
earnings forecast in the income statement changes in response to
alternative exchange rate scenarios.
⢠In general, firms with more foreign costs than revenues will be
unfavorably affected by stronger foreign currencies.
22. Economic Exposure
⢠Another method of assessing a firmâs economic exposure involves
applying regression analysis to historical cash flow and exchange rate
data.
23. Economic Exposure
PCFt = a0 + a1et + Âľt
PCFt = % change in inflation-adjusted cash flows
measured in the firmâs home currency over period t
et = % change in the currency exchange rate over
period t
Âľt = random error term
a0 = intercept
a1 = slope coefficient
24. Economic Exposure
⢠The regression model may be revised to handle multiple currencies
by including them as additional independent variables, or by using a
currency index (composite).
⢠By changing the dependent variable, the impact of exchange rates on
the firmâs value (as measured by its stock price), earnings, exports,
sales, etc. may also be assessed.
25. Translation Exposure
⢠The exposure of the MNCâs consolidated financial statements to
exchange rate fluctuations is known as translation exposure.
⢠In particular, subsidiary earnings translated into the reporting
currency on the consolidated income statement are subject to
changing exchange rates.
26. Translation Exposure
Does Translation Exposure Matter?
⢠Cash Flow Perspective - Translating financial statements for
consolidated reporting purposes does not by itself affect an MNCâs
cash flows.
⢠However, a weak foreign currency today may result in a forecast of a
weak exchange rate at the time subsidiary earnings are actually
remitted.
27. Translation Exposure
⢠Stock Price Perspective - Since an MNCâs translation exposure
affects its consolidated earnings and many investors tend to use
earnings when valuing firms, the MNCâs valuation may be affected.
Does Translation Exposure Matter?
28. Translation Exposure
⢠In general, translation exposure is relevant because
ďsome MNC subsidiaries may want to remit their earnings to their parents
now,
ďthe prevailing exchange rates may be used to forecast the expected cash
flows that will result from future remittances, and
ďconsolidated earnings are used by many investors to value MNCs.
29. Translation Exposure
⢠An MNCâs degree of translation exposure is dependent on:
ďthe proportion of its business conducted by its foreign subsidiaries,
ďthe locations of its foreign subsidiaries, and
ďthe accounting method that it uses.
30. Translation Exposure
⢠According to World Research Advisory estimates, the translated
earnings of U.S.-based MNCs in aggregate were reduced by $20
billion in the third quarter of 1998 alone simply because of the
depreciation of Asian currencies against the dollar.
⢠In 2000, the weakness of the euro also caused several U.S.-based
MNCs to report lower earnings than expected.
31. Impact of Exchange Rate Exposure
on an MNCâs Value
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period t
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which currency j can be converted to dollars at the
Transaction Exposure
Economic Exposure
32. Chapter Review
⢠Is Exchange Rate Risk Relevant?
⢠Purchasing Power Parity Argument
⢠The Investor Hedge Argument
⢠Currency Diversification Argument
⢠Stakeholder Diversification Argument
⢠Response from MNCs
⢠Types of Exposure
⢠Transaction, Economic, and Translation Exposures
33. Chapter Review
⢠Transaction Exposure
⢠Transaction Exposure to âNetâ Cash Flows
⢠Transaction Exposure Based on Currency Variability
⢠Transaction Exposure Based on Currency Correlations
⢠Transaction Exposure Based on Value-at-Risk
34. Chapter Review
⢠Economic Exposure
⢠Economic Exposure to Local Currency Appreciation & Depreciation
⢠Economic Exposure of Domestic Firms & MNCs
⢠Measuring Economic Exposure
⢠Sensitivity of Earnings & Cash Flows to Exchange Rates
35. Chapter Review
⢠Translation Exposure
⢠Does Translation Exposure Matter?
⢠Cash Flow Perspective
⢠Stock Price Perspective
⢠Determinants of Translation Exposure
⢠Examples of Translation Exposure
⢠Impact of Exchange Rate Exposure on an MNCâs Value