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EN
The article presents risk associated with currency fluctuations which can adversely affect exporters and importers. The solution to risk which currency fluctuations can cause is an effective use of derivative instruments such as forwards, futures, and vanilla options. The author presented practical examples of hedging techniques used by exporters and importers, employing these instruments. Likewise, the author explained the potential risks associated with the use of derivative instruments.
EN
The article is an essay on issues associated with the global financial crisis and tries to point out one of its often overlooked, but fundamental reasons: the belief that lies at the core of neoliberal doctrine that the financial sector must be deregulated and responsibility shifted almost exclusively to invisible 'market forces'. The author touches on the problems of derivatives and other tools of financial engineering, hedge funds operating in the off shore tax heavens, the associated rising budget deficit of states, currency speculation and other factors destabilizing the real economy. The article also points out that these factors are barely - if at all - included in the crisis management solutions devised by international institutions like IMF or IBRD and governments, which instead focus on bailouts and stimulus packages - taking over not control over the economy, but the liabilities of irresponsible financial institutions and increasing the supply of money artificially created by 'financial alchemists'.
EN
The article presents methods to secure the exchange rate risk using currency options. In current changes in the currency market, difficult to foresee, these instruments best meet their role, giving companies a chance to effectively use the positive impact of currency exchange risk. The Authors showed the practical use of currency options in the risk management. Opportunities and risks arising from the purchase option were also presented.
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