Hedging payables and receivables

(2 Points)

Typical methods for hedging the payables includes money market hedge which is based on the process of borrowing foreign currency to be received and then converting it to domestic currency and then investing for future use. The further method may include the use of derivatives (short position in FX forward or placing short position in Put Option). Typical methods for hedging the receivables includes money market hedge which is based on the process of borrowing home currency and then converting it to foreign currency and then investing for future use. The further method may include the use of derivatives (long position in FX forward or placing short position in call Option).

Typical methods for hedging the receivables includes money market hedge which is based on the process of borrowing foreign currency to be received and then converting it to domestic currency and then investing for future use. The further method may include the use of derivatives (long position in Call Option or placing short position in Put Option). Typical methods for hedging the payables includes money market hedge which is based on the process of borrowing home currency and then converting it to foreign currency and then investing for future use. The further method may include the use of derivatives (long position in Put Option or placing short position in call Option).

Typical methods for hedging the receivables includes money market hedge which is based on the process of borrowing foreign currency to be received and then converting it to domestic currency and then investing for future use. The further method may include the use of derivatives (short position in FX forward or placing long position in Put Option). Typical methods for hedging the payables includes money market hedge which is based on the process of borrowing home currency and then converting it to foreign currency and then investing for future use. The further method may include the use of derivatives (long position in FX forward or placing long position in call Option).

Typical methods for hedging the receivables includes money market hedge which is based on the process of borrowing foreign currency to be received and then converting it to domestic currency and then investing for future use. The further method may include the use of derivatives (long position in FX forward or placing short position in Put Option). Typical methods for hedging the payables includes money market hedge which is based on the process of borrowing home currency and then converting it to foreign currency and then investing for future use. The further method may include the use of derivatives (short position in FX forward or placing short position in call Option).