Copy a paragraph online first.
(1) Forward market hedging.
Using the forward foreign exchange market, we can prevent the possible losses caused by exchange rate changes by signing offset forward foreign exchange contracts, so as to achieve the purpose of maintaining value. Forward foreign exchange contracts reflect a contractual relationship, that is, one party is required to deliver a certain amount of one currency to the other party at a certain exchange rate on a specific date in the future in exchange for a certain amount of another currency. As for the source of funds for the performance of the contract, it may be existing or operating accounts receivable or not yet in place, and it will be purchased in the spot foreign exchange market when needed in the future. The value of cash flow can be determined by forward market hedging, but it is not necessarily the maximum. The premise of using forward market to hedge is that there must be a forward foreign exchange market, but not all currencies have forward foreign exchange markets in the real world.
(2) Money market hedging.
Through short-term borrowing in the money market, creditor's rights and debts with matching nature or offsetting nature are established to offset the exchange rate fluctuation risk involved in foreign currency receivables and payables. Similar to forward market hedging, money market hedging also involves a contract and the source of funds to fulfill the contract. But this is a signed loan agreement, that is, companies seeking money market hedging need to borrow one currency from one currency market, exchange it for another currency in the spot foreign exchange market and invest in another currency market. As for the source of funds for the performance of the contract, it is nothing more than the accounts receivable generated by the operation of the enterprise or the unsettled funds, which will be purchased in the spot foreign exchange market when necessary. If it belongs to the former, then money market hedging is "hedging"; If it belongs to the latter, money market hedging is not hedging, but it still has certain risks. Money market hedging involves two processes, namely, borrowing for foreign exchange and investment and two money markets, and its hedging mechanism lies in the relationship between interest rate difference and forward exchange rate in the two money markets.
(3) Option market hedging.
According to the forecast of the change trend of foreign exchange rate, in the foreign exchange option market, buy call or put options, wait and see the changes in the foreign exchange market, and decide to exercise or give up options, so as to achieve the purpose of preserving value and have profit opportunities. Because the option gives the buyer rights rather than obligations, the buyer exercises the option when the exchange rate becomes favorable, and gives up the option when it is unfavorable, so as to sit on the ground and watch the sky, ensure the bottom line of income, and expect to get unlimited profits. If multinational companies are not sure whether or when future cash flows will occur, then option market hedging is the most ideal hedging tool.
Now answer the question.
1. This is a strange question. . . I can answer how many dollars are needed now. A year later, it needs 3 million Australian dollars. If it is a money market, it is to borrow dollars first, then convert them into Australian dollars, put them into the market, and pay 3 million Australian dollars a year later.
Suppose that X dollars are needed now, then: (1/0.85) * x * (1+12%) = 300000000x = 2276785.71.
2. If the forward date is used, a contract will be signed one year later, and the US dollar will be exchanged for 3 million Australian dollars. If you need y's USD now, sign it.
Y *( 1+7%)= 0.8 1 * 3000000Y = 227 1028.04 & lt； X
So it's better to use forward.
3. The choice is complicated. . .
If it is done well, the option returns are high and the corresponding risks are high.