Houston Marine Electronics: International Finance Case on FX Transaction Exposure

9 Pages Posted: 10 Jul 2013 Last revised: 12 Sep 2017

See all articles by Thomas J. O'Brien

Thomas J. O'Brien

University of Connecticut - Department of Finance

Date Written: June 2016

Abstract

Houston Marine Electronics is a hypothetical United States manufacturer that needs to decide how to deal with the foreign exchange (FX) transaction exposure of a business deal in Australia in early 2013. One issue is whether the foreign currency is correctly valued, and if not, should this affect the hedging decision?

Keywords: Foreign Exchange, International Parity Conditions, Forward FX Contracts, Hedging, FX Transaction Exposure

JEL Classification: G31, G32

Suggested Citation

O'Brien, Thomas J., Houston Marine Electronics: International Finance Case on FX Transaction Exposure (June 2016). Available at SSRN: https://ssrn.com/abstract=2291624 or http://dx.doi.org/10.2139/ssrn.2291624

Thomas J. O'Brien (Contact Author)

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States
860-486-3040 (Phone)

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