BANK net income exposure Refers to its overall unlike exchange exposure in any given up-to-dateness Formula Net exposure = (FX assets FX liabilities) + (FX bought FX sold) Hedging Use funds forward to hedge its exposure Decreases the banks excitability of cash flows the banks payments are not take to fluctuate according to the currency movements bodied INVESTMENT VEHICLES An entity which allows investors to pond their currency and invest them not required to buy securities instantly as individuals One that is satisfactory for Mr. Ranbax is Exchange-tra! ded funds (ETFs) Characteristics of ETFs: long-term interchangeable funds which aim to replicate a particular seam market index traded on a stock exchange at prices that are determined by the market changes over time in response to a change in the stock prices underlying a stock index think to leading a specific index ETFs offer diversification and variety, hence suitable for Mr. Ranbax give investors a choice of an...If you command to get a full essay, order it on our website: OrderCustomPaper.com
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