Hedging Forex Risk through Currency Options

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5 жыл бұрын

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If the company that is planning to hedge the foreign exchange risk, is an importer and has to settle the payment in foreign currency, it will have the need to buy such foreign currency. If such Importer company uses currency option to hedge its foreign exchange risk: It should become a call option holder if the option contract is available in foreign currency. It should become a put option holder if the option contract is available in local currency. If the company is an exporter and has to receive the amount in foreign currency, it will have the need to sell such foreign currency.
If the exporter company uses currency option to hedge its foreign exchange risk,
it should become a put option holder if the option contract is available in foreign currency.
It should become a call option holder if the option contract is available in local currency.

Пікірлер: 83

@frankj2458 4 жыл бұрын

These videos have helped me out a ton in my MBA international finance class - and I go to a very good University 😂! Don’t tell my professor!

@pramodk3746 4 жыл бұрын

What a beautiful, step by step explanation! Thank you!

@anshumanjain848 4 жыл бұрын

I was having so much confusion in hedging portion....u made it so simple with conceptual clarity......before ur lecture I thought of leaving derivative chapter....bt now I'm much confident...ty...god bless u sir for ur immense effort😊🙏🙏

@chideepu 5 жыл бұрын

Great Way of Teaching. Crystal Clear Clarity. God Bless. Deepak Chikhale (FCMA (UK) & ACCA (UK)

@ridhimishra7353 4 жыл бұрын

Sir, thank you so much for these amazing lectures 🙏 You did not only teach but cleared all my confusion and concept.. Keep on doing the great job sir. Looking forward to you becoming one of the leading teachers of SFM.

@mizansiddiqui3779 4 жыл бұрын

Concepts ek taraf....Sir ki Smile ek taraf 😍 Thank You So Much Sir !

@orzoonbhattarai7107 5 жыл бұрын

I had never Understand the concept regarding Future/Forex/Option w.r.t foreign currency . Your efforts is very fruitful to me , very very thank to you . :) :)

@007PSD 5 жыл бұрын

Excellent way of teaching. Even a cpt student will be able to understand..

@nehabaig3969 4 жыл бұрын

Sir the way you teach is very clear ...every statement is clear after listening to you

@nnasirbaig 5 жыл бұрын

Sir you had decode the finance in best fruitful manner, thanks a lot.... keeping sharing these stupendous video😊👌

@dineshpanchal8861 5 жыл бұрын

Good enough to understand sir. Great and hard efforts by you. Thanks

@rutikar33 4 жыл бұрын

Sir, your way of teaching is commendable.... Nobody can explain derivative chapter as u do.. Thanks alot sir

@nayan1683 3 жыл бұрын

Simply the best way of understanding the concept. I don't know y other faculty making it too complex n time consuming as well.thank u so much sir ❤️🙏 for summarising all the concept in such brief span of time.

@mohitmalaviya9137 3 жыл бұрын

Ty soo much sir!!!!! Hats off to you efforts and intention for putting such important concepts on KZfaq soo that we as a student can make make most of it....Love you Sir🙏

@RakshandaAPatil 4 жыл бұрын

Thank you so much sir . I love your teaching style❤️

@sripriya029 2 ай бұрын

Thanks alot for this fabulous xplanation, first tym learner can also understand it very easily as u hv xplained evrythng from the beg 😊❤

@NikhilJobanputra Ай бұрын

Thanks and welcome

@asmasoudagar9260 4 жыл бұрын

Ur explanation is amazing..Thank you sir

@nofashaikh5470 3 жыл бұрын

I have done sfm class from renowned faculty. But that time was not have total clearity however after watching your lecture it is sure that we don't need to read or understand again as all concepts clear in one go only. Thank you very much sir ji. Will definitely refer 🙏👍

@dayanandkumar5249 3 жыл бұрын

Watching for Jan 21...& its too good...specially for self study...

@MdFayez-00ndc 4 жыл бұрын

Excellent, thank you sir.

@raghavv001 5 жыл бұрын

Sir aapki explanation ka fan hu bahut badaa. 🙏 The way you explain, it becomes easy to understand these topics. Thanks alot sir! 🙏

@NikhilJobanputra 5 жыл бұрын

Thanks Raghav

@yogitakhanna3964 Жыл бұрын

Thanks a lot sir for ur clear explanation 😊

@sagargulhane6455 4 жыл бұрын

thanks sir, It was very helpful to me...

@shameemmemon52 4 жыл бұрын

Best videos on forex God bless u sir

@neerajgaur9904 5 жыл бұрын

Sir you are just amazing 😊

@homecleaningforall Жыл бұрын

this helped a lot🎉

@karthick802 3 жыл бұрын

Explanation in English like some of your other videos would have been good for me to understand sir as i belong to non Hindi speaking state.

@narendersingh2440 4 жыл бұрын

sir can u plz solve the question no.47 of practice manual (2017 edition) ..its totally confusing the concepts.. where it put option is exercised but they not showing as inflow but rather outflow .. plz help

@harshpadia5577 2 жыл бұрын

Thank you very much sir 😊 its really helpful for me

@kavitakushwah4908 2 жыл бұрын

sir premium hme option contract me dena hi hota h qa? chhe hm call option le ya put option....? ..... pr esa kuj to nhi tha option contract me mention... bot confusing a smjha dijiye

@AnkitRamariya 4 жыл бұрын

Sir is question m meri scanner m put option ka bhi info diya hua hai jiska calculation meri smjh nhi a rha....cma final 2016 dec (4)....put option kese use hoga??

@shubhneetgoyal3372 4 жыл бұрын

Arre thank you sir....u just killed my sfm phobia

@shiveshabha 4 жыл бұрын

Sir Thank you so much for your videos.I have one doubt in pay off question.Long on currency and long on put option tells pay off profile of a a. call buyer b. call writer, or put buyer or put writer....plz help

@letstradewithtrader 5 жыл бұрын

After Few days, having SFM Exam, and best way to revise Concepts is through your Videos... Just a big Fan of you Sir.... Always Share Blessings with us. :)

@babusundar1344 3 жыл бұрын

Please suggest, I need your books with icai problem working .

@devyankbansal6232 2 жыл бұрын

Very helpful video sir thank you very much

@varshasahu2925 9 ай бұрын

Sir please suggest book for that subject

@kunjammujoseph6689 3 жыл бұрын

Excellent Teaching..Respect you Sir...God bless You..

@NikhilJobanputra 3 жыл бұрын

Thanks and welcome

@chennanirmala5705 3 жыл бұрын

Thank you so much sir

@abdulrahim363 4 жыл бұрын

Very nice class

@rajvanshverma9542 9 ай бұрын

Thank you sir 🙂🙂

@tutiontopicwise2504 Жыл бұрын

Thanks

@juilipathak2380 3 жыл бұрын

Thank you so much sir 😇

@snekhamathi1500 4 жыл бұрын

Please use English as the medium of communication. there are many students who don't speak Hindi and preparing for Financial Risk management exams.

@mauriceowuoth3584 Жыл бұрын

yeah,kindly

@subhashsaraf6508 3 жыл бұрын

Very Informative

@JaspalSingh-si4yt 3 жыл бұрын

Thanks a lot sir❤️

@entertainmentadda2052 3 жыл бұрын

Thnku sir for this video

@Mudassir_Hassan Жыл бұрын

Watching for june 23 attempt for CA final Pak... theory along with numerical is an exceptional experience for me in FOREX topic. what a job sir🤗

@MohitKumar-wh7lx 5 жыл бұрын

Best❤️

@shushilgaurave 5 жыл бұрын

Sir the way you explain the concepts is highly appreciable.

@ramyanidadavolu9941 3 жыл бұрын

Sir through your explanation I am conceptually clear. Plz share what if in the same problem both ask and bid rates have been given as there in Icai question no 10..plz resolve sir

@surajsbeenhere8944 5 жыл бұрын

sir can you please upload for put option too ...

@meenakshikandhway6337 5 жыл бұрын

Sir pls provide some numerical questions in interest rate swap

@abhisheksarawgi537 3 жыл бұрын

Dear Sir, i am a big fan of yours. The way you teach and explain is very good. I want to meet you in person.. Please advise... 🙏

@NikhilJobanputra 3 жыл бұрын

Always welcome

@ankitbakshi6046 4 жыл бұрын

Classic Classic 👍👍

@caunah 4 жыл бұрын

This seems like just the lesson i need right now but the language, i am lost. Is there a way to perhaps to have the video fully translated to English? Thank you

@NikhilJobanputra 4 жыл бұрын

Yes Definitely Dear. I shall upload the complete English version of the same video.

@fapohundaesther5815 3 жыл бұрын

@@NikhilJobanputra please can I get the English version asap my exam is in 4 days.please kindly help me

@kameshwarikapal9776 4 жыл бұрын

Sir in PM they have taken rates i.e 4.5% and 5.5% as 180 days rate and not on per annum basis... What to do in exams ?!

@NikhilJobanputra 4 жыл бұрын

Please follow the solution that I have included in the video.

@togetherwithme2780 3 жыл бұрын

@@caabbayi sad truth we have atleast such 60 questions in entire sfm subject ! We have to mug up such things as to where we gotta do what icai had done ! What a pity friends ! Sad truth of CA course

@jayedahmed4925 5 жыл бұрын

Sir, how did you convert 4.5% p.a into 1.0225 in money market hedging?

@shameemmemon52 4 жыл бұрын

4.5÷2 ÷100 +1

@al-biryani3044 3 жыл бұрын

5 dislikes but why...isse simple explanation kahi nhi milega

@ROHITROHINI18 4 жыл бұрын

Sir please bataiye yeh is this applicable to cma final

@NikhilJobanputra 4 жыл бұрын

Yes Dear

@deepchiku9059 5 жыл бұрын

Will You Please Clarify What do you mean by If Option Contract is available in Foreign currency. In one example Indian Firm needs JPY & Strike Price is given as JY 2.125. My doubt is 1) If We Have to Read it as JY 2.125 Per INR 2) Thus Option is given in Foreign Currency so it Should be CALL Option. ICAI has taken it as PUT Option. Will you kindly. Clarify?

@NikhilJobanputra 5 жыл бұрын

In one example Indian Firm needs JPY & Strike Price is given as JY 2.125. Your doubt is 1) If We Have to Read it as JY 2.125 Per INR Till here you are right. 2) Option is given in Foreign Currency so it Should be CALL Option. ICAI has taken it as PUT Option. Here you are not interpreting the question correctly. Analysis: Your Firm needs to buy JPY, correct... In the Option contract INR is the "Underlying" Therefore you should sell INR to buy JPY. So, you need to hold PUT option.

@BasicQT 4 жыл бұрын

CA Nikhil Jobanputra sir, bas yahi exact doubt tha, thank you ❤️