CURRENCY RISK MANAGEMENT /FX

Volatile exchange rates can have a significant impact on the earnings, cash flows, and profitability of your company. Effective management of foreign currency risk can help stabilize your company's performance relative to currency markets and is a source of competitive advantage.

A Management group can structure cost-effective currency management strategies from which you can choose to match your precise risk exposure—so you can focus more on your core business and less on currency markets.

Work with your Corporate Treasurer to:

• Identify and quantify your Foreign Exchange exposure
• Recommend or develop the most appropriate risk management strategy
• Advise on short term market movements and advantageous market timing
• Implement your strategy
• Monitor your hedge on an ongoing basis

CURRENCY HEDGE TOOLS

Spot Contracts

A means of converting foreign currency into U.S. dollars or making a payment in a foreign currency. A spot contract allows you to buy or sell foreign currency at today's exchange rate, with final settlement occurring, in most cases, two business days later.

Options are contracts that, for a fee, guarantee a worst-case exchange rate for the future purchase of one currency for another. Unlike a forward contract, the option does not obligate the buyer to deliver a currency on the settlement date unless they exercise the option.

OTHER RISK MANAGMENT OPTIONS:

Hedging Risk – Markets - Participants

• Markets/Investors
• Equity Portfolios
• Fixed Income Portfolios
• Domestic Currency

Markets/Corporations/Manufactures

Sectors
Financial's Technology Healthcare Basic Materials Energy Retail Housing Airlines	Biotech Defense Pharmaceuticals Transportation Automotive Utilities Telecom