Predict the future of the currency including the impact

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Reference no: EM131301142

DISCUSSION

"Currency Exchange Rate" Please respond to the following:

• From the e-Activity Part 1, based on your review of the currency exchange rates between the U.S. dollar and the various European currencies, evaluate in which country a financial institution should invest to maximize its return on investment for the minimum risk. Provide a rationale for your approach.

• From the e-Activity Part 2, based on your research of the current EURO currency crisis, predict the future of the currency, including the impact to financial investment and risk within the EURO zone for financial institutions. Provide support for your prediction and evaluation.

• Go to Bloomberg's Website and review the today's exchange rate between the U.S. dollar and the various European currencies at https://www.bloomberg.com/markets/currencies/europe-africa-middle-east/. Be prepared to discuss.

"Hedging" Please respond to the following:

• The futures market concept began centuries ago with hedging in the agricultural commodity prices. The markets have since expanded into a variety of future contracts, including hedging related to metals, foreign currency, and interest rates. Assess the risk involved in modern-day future contracts, suggesting a strategy for using this type of investment within financial institutions. Provide support for your assessment.

• From the e-Activity Part 3, based on your research related to the regulatory requirements of futures contract risk exposure reporting, assess the adequacy of the reporting requirement. Indicate whether or not the public may be misled by management's reporting of the financial risk related to these types of investments. Make a recommendation for improvement to the reporting requirements, indicating how this improvement will minimize risk for public users of the financial information.

Reference no: EM131301142

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