Question: 1. Triangular arbitrage. 2. Covered interest arbitrage. 3. The measurement of forecast error. 4. Transaction exposure: Value at Risk (VaR) method. 5. Commonly used techniques
1. Triangular arbitrage.
2. Covered interest arbitrage.
3. The measurement of forecast error.
4. Transaction exposure: Value at Risk (VaR) method.
5. Commonly used techniques to hedge payables and receivables, including forward/futures hedge, money market hedge, and option hedge.
6. The use of forward contracts to hedge translation exposure
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