Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. banks find it necessary to accommodate their clien

Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in...

80.2K

Verified Solution

Question

Finance

Banks find it necessary to accommodate their clients’ needs tobuy or sell FX forward, in many instances for hedging purposes. Howdoes a bank mitigate the currency exposure it has created foritself by accommodating the clients’ forward transaction?

Answer & Explanation Solved by verified expert
4.1 Ratings (685 Votes)
The bank mitigate the currency exposure in a forward trade through swap transactions A swap transaction is the simultaneous sale or purchase of spot foreign exchange against a    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Banks find it necessary to accommodate their clients’ needs tobuy or sell FX forward, in many instances for hedging purposes. Howdoes a bank mitigate the currency exposure it has created foritself by accommodating the clients’ forward transaction?

Other questions asked by students

Accounting
1.2K views

Problem 21A-1 a-c The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and...

Chemistry
1.2K views

(THREE PARTS) Ethyl alcohol is formed by enzyme action on sugars and starches during fermentation. The...

Medical Sciences
1.2K views

Janine was diagnosed with multiple sclerosis. Write, in your own words, why her visual evoked potential...

Physics
1.2K views

54 Two cells having the same emf are connected in series through an external resistance...

Geometry
1.2K views

What is the radius of the circle x y 7x 0 Write your answer in...

Calculus
1.2K views

Question Abdul Bea Cassie and Diego are landscapers Each charges a set fee plus an...

Algebra
1.2K views

Is this a function Domain Range 1 BE 3 5

Algebra
1.2K views

Compute using Euler Sum Formula logn

Accounting
1.2K views

Thornton Manufacturing Company experienced the following accounting events during its first year of operation. With...

Accounting
1.2K views

Which of the following methods would be the most effective technique for an auditor to...

Accounting
1.2K views

On November 1, 2018, Kris Lehman established an interior decorating business, Modern Designs. During the...

Accounting
1.2K views

Javier and Anita Sanchez purchased a home on January 1, 2017 for, $500,000 by paying...