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Title: Balance sheet hedge requires an equal amount of exposed foreign currency assets and liabilities. A G Post by: boland on May 18, 2016 Balance sheet hedge requires an equal amount of exposed foreign currency assets and liabilities. A German company's subsidiary in Poland has Zloty as its functional currency. To hedge its translational exposure the company should
A) issue 10 year Eurobond guaranteed by the parent matching the amount of subsidiary's assets. B) start rolling over 1 year forward contracts. C) obtain 5 year zloty loan in Poland. D) start rolling over 3 month zloty loans, repatriate and convert the proceeds in euro. Title: Re: Balance sheet hedge requires an equal amount of exposed foreign currency assets and liabilities. Post by: noxx53 on Jun 24, 2016 Content hidden
Title: Re: Balance sheet hedge requires an equal amount of exposed foreign currency assets and liabilities. A G Post by: boland on Jul 3, 2016 This is awesome, thanks so much
Title: Re: Balance sheet hedge requires an equal amount of exposed foreign currency assets and liabilities. A G Post by: noxx53 on Jul 4, 2016 You're welcome ;)
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