The purpose of syudy is to review the management of Foreign Exchange Risk by forward exchange rate. In chapter II, the management of transaction exposure of foreign exchange risk was reviewed. In chapter III, the system and status of forward foreign t...
The purpose of syudy is to review the management of Foreign Exchange Risk by forward exchange rate. In chapter II, the management of transaction exposure of foreign exchange risk was reviewed. In chapter III, the system and status of forward foreign transaction in Korea were reviewed. And in chapter IV, the hedging effect of transaction exposure was analyzed. This study can be summarized.
1. There is a room for existence of forward exchange market in Korea. In fact, exporters and importers could make an opportunity profit on toward exchange transaction in 1995. Exporters could make an opportunity profit about for 6 months.
2. There are many ways to hedge foreign exchange risk besides forward exchange transaction. It is difficult to use financial futures transaction in the near future in Korea. So it is desirable to activate forbad exchange transaction. It is useful to introduce foreign exchange broker system and activate foreign call market..
3. We shoed attempt to improve companies' understanding of forward transaction system and popularize it by training specialists.