To hedge the financial risk of exchange rates using the tools of financial engineeringTo hedge the financial risk of exchange rates using the tools of financial engineering

Authors

  • sabeha qasem hashim College of Administration and Economics - University of Baghdad
  • mohammad ali ibrahim College of Administration and Economics - University of Baghdad
  • eetesam jaber shkarji College of Administration and Economics - University of Baghdad

Keywords:

Hedging financial   Risk Exchange Rates Tools   Financial Engineering

Abstract

That radical changes in financial markets, including the foreign exchange market in recent decades and the increased volatility is expected in these markets contributed to the increased exposure of investors to many of the risks of non-traditional One is the volatility is expected in foreign exchange rates, which in turn lead to fluctuations in the value of current flows expected cash in the future which will reflect negatively in the value of the facility and that imposes a challenge for those companies seeking to meet the exchange rate risk and the search for ways to neutralize those risks and volatility, which is the important issue and the president in the field of international financial figured prominently by theorists and researchers in this area and the multiplicity of methods used in the process of hedging against fluctuations in nominal exchange rates in the short term and is mainly in the use of tools of financial engineering (derivatives), which include futures and futures options and swaps for the purpose of choosing the best way to hedge should be struggling between revenues and cost of each, the possible effects in reducing the risk and the extent of suitability for after the time covered by the risk of currency it is natural to compare the multinational companies and international investors the cash flow you expect from each method used in the hedge before choosing any of them also choose how to hedge the appropriate can change over time and can change the relative merits of each.

Published

2024-05-25

How to Cite

صبيحة قاسم هاشم, محمد علي إبراهيم العامري, & أعتصام جابر الشكرجي. (2024). To hedge the financial risk of exchange rates using the tools of financial engineeringTo hedge the financial risk of exchange rates using the tools of financial engineering. Iraqi Journal for Administrative Sciences, 6(25), 1–33. Retrieved from https://mail.journals.uokerbala.edu.iq:8443/index.php/ijas/article/view/1684