Managing Transaction Exposure

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Managing Transaction Exposure 11 Chapter South-Western/Thomson Learning © 2003.

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Presentation transcript:

Managing Transaction Exposure C H A P T E R 11 Managing Transaction Exposure COPYRIGHT © 2008 South-Western/Cengage Learning.

Exhibit 11.1 Contingency Graph for Hedging Payables with Call Options

Exhibit 11.2 Use of Currency Call Options for Hedging Euro Payables (Exercise Price = $1.20, Premium = $.03)

Exhibit 11.3 Comparison of Hedging Alternatives for Coleman Co.

Exhibit 11. 3 Comparison of Hedging Alternatives for Coleman Co Exhibit 11.3 Comparison of Hedging Alternatives for Coleman Co. (continued)

Exhibit 11.4 Graphic Comparison of Techniques to Hedge Payables

Exhibit 11.4 Graphic Comparison of Techniques to Hedge Payables (continued)

Exhibit 11.5 Contingency Graph for Hedging Receivables with Put Options

Exhibit 11.6 Use of Currency Put Options for Hedging Swiss Franc Receivables (Exercise Price = $.72; Premium = $.02)

Exhibit 11.7 Comparison of Hedging Alternatives for Viner Co.

Exhibit 11. 7 Comparison of Hedging Alternatives for Viner Co Exhibit 11.7 Comparison of Hedging Alternatives for Viner Co. (continued)

Exhibit 11.8 Graph Comparison of Techniques to Hedge Receivables

Exhibit 11.8 Graph Comparison of Techniques to Hedge Receivables (continued)

Exhibit 11.9 Review of Techniques for Hedging Transaction Exposure

Exhibit 11.10 Illustration of Repeated Hedging of Foreign Payables When the Foreign Currency is Appreciating

Exhibit 11.11 Long-Term Hedging of Payables When the Foreign Currency is Appreciating

Exhibit 11A. 1 Possible Scenarios for Houston Co Exhibit 11A.1 Possible Scenarios for Houston Co. When Hedging with a Straddle