Reference no: EM133078260

FIN330 International Finance - European International University

Assessment - Comparative International Financial Analysis

Question 1. Hedging is often used in international finance to offset the risk of making international investments. Create a chart that compares the different types of hedging and explain the positive and negatives sides. Please give detailed financial examples of when it is appropriate to use each hedge fund and include why and how firms use hedging to minimize risk.

Question 2. In a global context what is the difference between a future and an option? What situation should a future be used for versus an option? How can financial firms benefit from using an option or a future and what is the impact of options and futures on the international markets?

Question 3. Currencies fluctuate on the international exchanges and international firms often have to make decisions based off of available exchange rates. What impact does currency fluctuation have on international trade and how can a company minimize the effect of the fluctuating currencies on its business?

Question 4. Sometimes countries experience hyperinflation. How does hyperinflation affect the global market and how can a firm who is operating in a hyper-inflated country manage their business?

Attachment:- International Finance.rar