Trade Academy Center

In the export ecosystem, fixing a competitive international price is useless if currency volatility destroys operating profitability before the invoice matures. Discover how to apply the mathematical formulas of Forward contracts and Currency Options to shield your net profit margin against... Leer este artículo en español en Aula Mercantil: La fórmula matemática de las coberturas cambiarias (Forward y Opciones) . Financial Shielding in Foreign Trade: The Mathematical Formula for Currency Hedging (Forward and Options) In the export ecosystem, fixing a competitive international price is useless if currency volatility destroys operating profitability before the invoice matures. Many Chief Financial Officers make the mistake of treating the exchange rate as a lottery or, conversely, execute hedges without auditing the implicit cost of the premium or swap points. International financial engineering provides us with two exact mathematic...