2008Unpublished venueRequires access

Decision Rules for Corporate Management of Foreign Exchange Risk

John A. Doukas, Bala Arshanapalli

Open publisher page 2 citations

Abstract

This paper presents specific decision rules for the management of corporate foreign exchange risk. It is shown that a strong association exists between foreign exchange risk and relative price risk. The implication of this association is that corporations should simultaneously use forward currency and commodity futures instruments for optimal management of foreign exchange risk.

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What this paper is about

This paper presents specific decision rules for the management of corporate foreign exchange risk. It is shown that a strong association exists between foreign exchange risk and relative price risk. The implication of this association is that corporations should simultaneously use forward currency and commodity futures instruments for optimal management of foreign exchange risk.

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OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This paper presents specific decision rules for the management of corporate foreign exchange risk. It is shown that a strong association exists between foreign exchange risk and relative price risk. The implication of this association is that corporations should simultaneously use forward currency and commodity futures instruments for optimal management of foreign exchange risk.

Key concepts: Foreign exchange risk, Futures contract, Foreign exchange, Risk management, Business, Currency, Foreign exchange market, Financial economics

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