Foreign Exchange And Risk Management By C Jeevanandam Pdf
Priya’s friend, Rajan (a finance manager), warned her: “In three months, the Yen might drop against the Rupee. If that happens, your ₹3 crore could shrink.”
Priya dismissed it. “The Yen is stable,” she said.
But within a month, the Japanese economy weakened, and the exchange rate moved to:
1 JPY = ₹0.55 foreign exchange and risk management by c jeevanandam pdf
Now, 50 million JPY = only ₹2.75 crore. Her profit margin vanished – she was facing a loss of ₹25 lakh.
This is the core problem Jeevanandam’s book addresses: Foreign Exchange Risk – the uncertainty in the value of future cash flows due to fluctuating currencies. Priya’s friend, Rajan (a finance manager), warned her:
Understanding what drives currency value is a central theme.
This is the pivotal section of the text. It categorizes the risks faced by multinational corporations (MNCs) and outlines hedging strategies. Fixed vs
Foreign Exchange and Risk Management by C. Jeevanandam acts as a bridge between theoretical economic concepts and practical corporate finance. It moves beyond simply defining terms to calculating actual premiums, costs, and hedge effectiveness. For students of commerce and practicing finance managers, the text provides the necessary quantitative skills to navigate the volatility of international finance.
