acct 304 assignment

Answer the following Questions:

  • What is market risk? Illustrate this risk with a foreign exchange example.
  • Explain, in your own words, the difference between a multicurrency translation exposure report and a multicurrency transactions exposure report.
  • Explain how a company might use a currency swap to hedge its foreign exchange risk on a foreign currency borrowing.
  • What is a financial futures contract? How does it differ from a forward exchange contract?