Forward hedge overlay for euro

BACKGROUND: A Middle East-based importer of European machinery has an ongoing exposure to euro strength, and has accrued hedges in the first half of this year at an average rate of 1.1000. The amount of hedges accrued is enough to cover estimated import costs through to the end of 2004. The company has an internal budget rate of 1.1200, but, more importantly, it is at risk of losing business to its less-hedged competitors if spot falls too far below its hedge rate.

PROBLEM: The company

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:

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: