Hedging Instruments, Quotations and Aggregating Exposures

Companies selling or purchasing abroad with invoices denominated in foreign currency are exposed to foreign currency risk and thus foreign exchange risk.

This course begins with an explanation of the various types of risk and the foreign currency hedging activities available to mitigate or eliminate foreign currency risk.

Enrollees learn about multiple types of hedging instruments and gain an understanding for how to aggregate exposures into meaningful categories. Hedging examples are discussed to provide a better understanding of how to apply each instrument. The course concludes with a review of FASB’s ASC 815 requirements for Derivatives and Hedging.