Foreign Exchange and Pricing Risk
You see why a correctly costed export order loses money without anybody making a mistake. You find where the currency risk really starts, how to write it down and net it off, and which currency your profit is actually measured in. And you see what a forward, an option, and a contract clause each do, and each cost, on one real order.
Published by Merchandising Academy · First lesson free to read
Course value
What will you be able to do?
Work outcome
You can read a letter of credit for the terms that will refuse your documents, price what a payment term actually costs you in working capital, and choose an instrument that matches the risk you are carrying.
Who it is for
Factory, supplier, brand and buying-office teams.
What you will produce
You build a currency file for one export order. You build a dated exposure schedule, netted by currency. You show the order's result in both currencies, with the operating and currency lines split apart. You read six quotation rounds against a competitor's currency. You price a forward, an option, and a contract clause side by side with their break-even points. And you take a hedge ratio from the factory's own record of order cuts.
Learning format
6 lessons · 0 templates · workplace calculations and decisions.
Lessons
- 01The price was a bet, and it was placed in January🔒20 min
- 02The exposure schedule, and the hedge that costs nothing🔒18 min
- 03Two currencies, one company: which one is your profit?🔒20 min
- 04The exposure that appears on no schedule🔒16 min
- 05What the instruments do, and what each one costs🔒20 min
- 06When not to hedge, and the policy that replaces guessing🔒16 min