Exposures, Financial Contracts, and Operational Techniques Essay

Exposures, Financial Contracts, and Operational Techniques - Essay Example As the research declares the transaction exposure can be hedged through three types of contracts: forward market hedging, money market hedging, and option market hedging. The forward market hedging supposes to enter into a derivative contract when the object of the transaction exposure is determined. The contract from the derivative market will be liquidated with the funds obtained from the spot market. According to the paper findings in a money market hedge, the company which is exposed to transaction exposure borrows or invests in one currency and exchanges the proceeds for another currency. The proceeds for the loan or saving account are related to business operations when the hedge is covered or they are purchased from the market at the end of the contract when the hedge is uncovered. Operating exposure can also be offset by considering changing financing policies: using natural hedges, using back-to-back (parallel) loans, and using currency swaps. The first method considers matching the currency cash-flows. The success of this practice depends of the predictability and low volatility of cash-flows. Back-to-back loans are agreements between companies from different countries to borrow each other domestic currency for the period of contract. It is actually a credit swap, because the two companies borrow the currency which will be repaid.

Alchol and beverages Essay Example | Topics and Well Written Essays - 500 words

Alchol and beverages - Essay Example As far as it is within the limit, it is permitted. MADD is on the side of moderate alcohol consumption and does not insist on a ‘no’ to alcohol according to their philosophy. The organization bases its philosophy on statistical data in Traffic Safety Annual Assessment of alcohol impaired driving fatalities. Based on the fatality rates, it is clear that the philosophy of the organization as revealed in its mission statement is valid and inevitable. The organization highlights on the innocent victims of the crime, especially school children and attempts to support them. For instance, a statistical data highlighted to support their philosophy is â€Å"In 2007, an estimated 12,998 people died in alcohol-impaired traffic crashes†¦Three in every 10 Americans will be involved in an alcohol-related crash in their lives† as put on their web site. I cannot neglect the fact that the organization’s philosophy on drunk driving has made me rethink my business philosophy. As an individual I sympathise with their philosophy and agree that things are to be put in their place when it comes to drunk driving. However, as a professional, I have a challenge to find a balance between doing justice to my business ethics and playing responsible to the