Hedging Taiwan dollar risk

Background: A US-based corporate is looking to hedge Taiwan dollar receipts of about $1 million per month for the next year. It has an internal requirement to fully hedge these receipts for the next 12 months and pay no upfront premium. The most straightforward solution would be to enter into a strip of forward outright deals to buy $1 million and sell the Taiwan dollar for each date. Rather than agreeing 12 different rates for each month, it is possible to solve for a common forward rate

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: