Here is the synopsis of our sample research paper on Forwards and Other Financial Tools. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 10 page paper looks at forward contract, describing what they are and then considering how they can be used in hedging along with the constraining factors which limit their use in hedging. The second part of paper looks at another financial tool used internationally; swaps. The paper describes what these are, the different types of swaps and considered how or why difference what markets are very important for international business. The bibliography cites 8 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEforward.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
for the other party to sell or to lend), a specific quantity of a set item at a price and time that is specified when the contract was first made.
The terms in the contracts are always specific, such as timing, locations. These may concern forward agreements in terms of future loans,
commodities, currency or other assets. These can help to stabilize a market, for example, a farmer may want to ensure that he will gain a set level of income for
his harvest before he plants it, just as this may be a company that is receiving income in a foreign currency and wants to make sure that they minimize the
risk in the exchange rates. There will be knowledge of the spot (current) rate for the currency, but they will not know
what the price will be in the future; there is a risk that either may loose out if the prices change. The
sale of a forward can help eliminate this uncertainty. The company shifts his risk to the dealer or purchaser of the contract, the company will no longer be exposed to
a potential fall ion the exchange rate which would mean that the company would gain less for their currency in the future. But there is also a risk; the company
may also loose out on any increase in price. The dealer or initial purchaser may hold onto the forward or sell it
on to another party, such as a different company that needs that type of currency. In this market many contract may be
...