Acknowledgments About the Author Preface Introduction An Overview The Various Exposures Foreign Currency Management Transactional Hedging: An Example of How to Manage Accounting Exposure Is Hedging the Answer? Conclusion The Competitive Edge The Currency Markets The Interbank Interbank Operations Interbank vs. Exchange Contracts Servicing the Client Basic Concepts of Foreign Exchange Types of Currencies Exchange Rate Determination Exchange Restrictions Purchasing Power Real and Nominal Rates Interest Rate Parity Why Interest Rate Parity? The Eurorate Effects of Interest Rate Changes Basic Concepts: Hedging What is a Hedge? Transferring Risk Parallel Markets Parallel Currency Markets Strategic Exposure The Currency Management Program Preparing the Survey The Analysis The Currency Management Team The Information Management System Writing Corporate Policy Corporate Objectives The Hedge Model Transparency Cost/Benefit Analysis Appropriate Resources Stress Testing Risks of Hedging Trading Rules Prospecting the Corporate Client Consultative Selling The First Appointment The Follow-up Proposals Some Common Traps The Individual Buyer The Personal Benefit The Coach The Technical Buyer The User Buyer The Economic Buyer A Final Word Appendix One - Topic Review Appendix Two - Currency Exchanges Worldwide Appendix Three - World Value of the Dollar Endnotes Index
