Managing foreign exchange risk -an evidence from Indian market.
Published: 2011
Author(s) Name: Dr.P.Thirumalvalavan, M.Padmavathi
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Abstract
Managing foreign-exchange risks now constitutes
one of the most difficult and persistent problems for
financial managers. This paper attempts to ascertain
the foreign exchange risk management practices of
Tirupur and is confined to 80 associated members
of Tirupur Exporters Association. The study finds
wide usage of derivative products for risk
management and most of the companies are exposed
to transaction exposure. Further in terms of
instruments used to manage risk, the preference is
mostly in favour of forward contract, followed by futures, options and swap.
Keywords - Foreign exchange, Foreign exchange
risk, Foreign exchange exposures, Hedging, risk
management instruments, Tirupur
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