Jeevanandam emphasizes that risk management doesn't happen in a vacuum. It is governed by: Foreign Exchange & Risk Management - C. Jeevanandam
: For more flexibility, they pay a "premium" for the right (but not the obligation) to exchange currency at a specific rate. This protects them from "downside" risk while allowing them to benefit if the exchange rate moves in their favor. Netting and Leading/Lagging
The work of Prof. C. Jeevanandam , particularly in Foreign Exchange & Risk Management