Houston Marine Electronics: International Finance Case on FX Transaction Exposure
9 Pages Posted: 10 Jul 2013 Last revised: 12 Sep 2017
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: 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
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