Should options be a part of a Irish companies foreign exchange hedging strategy?

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Palanisamy, Yuvaraj
Issue Date
MBA in Finance
Dublin Business School
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This research is designed to study the foreign exchange risk management strategies and identify which derivative instruments effectively reduce the exchange rate risk exposures of companies. This study employs a modified Black Scholes model to value the currency options and comparative statistical calculations have been undertaken to study the effectiveness of currency options. Portfolio optimization will be introduced in this study to identify the optimal hedging strategy. Author Keywords: Foreign exchange, risk management