FMF9

Syllabus G3. Hedging Techniques 2 / 3

a) Discuss and apply traditional and basic methods of foreign currency risk management, including:
iv) forward exchange contracts 
v) money market hedging

b) Compare and evaluate traditional methods of foreign currency risk management.
c) Identify the main types of foreign currency derivatives used to hedge foreign currency risk and explain how they are used in hedging.
Hedging Techniques