Currency Options and Their Role in International Trade

Finance & Accounting
Pages 9 (2259 words)
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Currency Options and Their Role in International Trade Name: Professor: Course Name: Course Title: Course Number: Date Due Introduction Any business enterprise can benefit greatly through proper management of their risk. Due to the increased competition in the international market, the need to plan and realize an effective business strategy that aims at coming with efficient risk management criterion is vital.


In order to deal with the problem of changing market prices, the trader needs to continually evaluate and analyze the functions of the market and the goals of the business enterprise (Stanley 1998). In addition, the business must be in a position to put in place new market rules and to be monitoring the trade trends and its development. In most of the world states, trade has emerged as one of the key sectors of the economy and most of her citizens depend on the trade for their source of living. The growth of the energy markets and the strategies of the energy providers have been the driving force of these trade improvements over the recent years. A number of commodities in the energy sector such as power, gas, carbon dioxide and even the weather have found their way into the trade market in societies. This has led to the improvement of the use of the scarce resources and increased complex organizations, process interfaces and the system infrastructures. ...
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