0136091008_PPTsM08_Eiteman0136091008_12_MBF_C08课件.pptVIP

Chapter 8 Foreign Currency Derivatives Foreign Currency Derivatives Financial management of the MNE in the 21st century involves financial derivatives. These derivatives, so named because their values are derived from underlying assets, are a powerful tool used in business today. These instruments can be used for two very distinct management objectives: Speculation – use of derivative instruments to take a position in the expectation of a profit Hedging – use of derivative instruments to reduce the risks associated with the everyday management of corporate cash flow Foreign Currency Derivative