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    Reducing Exchange Rate Risks

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    Explain the main ways in which a company can reduce it's exposure to exchange rate risks.

    © BrainMass Inc. brainmass.com October 10, 2019, 5:27 am ad1c9bdddf
    https://brainmass.com/business/options/reducing-exchange-rate-risks-505590

    Solution Preview

    A company can reduce its exposure to exchange rate risks by utilizing the various hedging mechanisms or tools available in the global financial markets, such as interest rate swaps, futures and forward contracts, call and put options. These hedging tools allow a company to limit its risk ...

    Solution Summary

    This solution provides an explanation of the main ways in which a company can reduce it's exposure to exchange rate risks.

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