The following points highlight the four main products of currency derivatives. The products are: 1. Forward Contract 2. Futures Contract 3. Options Contract 4. Swaps. 1. Forward Contract: Forward contracts are used by companies and individuals to hedge currency risk. In December 2003, the RBI permitted resident individuals to enter into forward contracts to hedge their foreign exchange risk. Resident [...]
Here is an essay on ‘Eurocurrency Market’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Eurocurrency Market’ especially written for school and college students. Essay Contents: Essay on the Introduction to Eurocurrency Market Essay on Eurocurrency Deposits and Loans Essay on Eurocurrency Market Versus the Foreign Exchange Market Essay on the Growth of the [...]
Empirical research shows that MNC financing decisions are affected by several factors besides cost of capital. MNC affiliates' capital structure is designed to accommodate the imperatives of tax planning, agency costs, host country political risk, the level of creditor rights protection, regulatory restrictions and capital market development in the host country. Additionally, as issuer requirements increase, there can also be [...]