strategic bussiness management
STUDENT NUMBER-00387834
ASSIGNMENT NAME- INTERNATIONAL FINANCIAL MANAGEMENT.
A Report to the Finance Director of Quick Nourish Plc. Supermarket. Chain (QN) for presentation to the Directors to address concerns raised at the recent Board Meeting
DATE: 3RD MARCH 2014
NUMBER OF WORDS—2,500 WORDS.
TABLE OF CONTENTS PAGES
1. Introduction -------------- 2
2. Body of Report -------------- 4
3. Conclusion -------------- 7
4. Appendices --------------- 8
5. References ---------------- 9
INTRODUCTION: Derivatives have been traded for centuries, with early examples including tulip bulb options in Holland and rice futures in Japan during the 17th century. But futures markets were relatively small until the 1970s when developments in pricing methodology spurred spectacular growth. The derivatives market has grown 100-fold over the past 30 years, with estimates of the current size of the market at more than $200 trillion, based on the notional value of contracts outstanding. (Andrew Balls 2014) Taking out short term derivatives or taking positions in them by Multi-National Companies, Firms or organization be it large or small, have become essential and necessary due to incessant fluctuations in exchange rate. Today's sophisticated international markets have helped foster the rapid growth in derivative instruments. As long MNC’s or individuals deal in more than one currencies whether in payables or in receivables. Given the potential shifts in the supply or demand for currency, firms and individual who have assets or business interest in foreign currencies that deals in businesses that
ASSIGNMENT NAME- INTERNATIONAL FINANCIAL MANAGEMENT.
A Report to the Finance Director of Quick Nourish Plc. Supermarket. Chain (QN) for presentation to the Directors to address concerns raised at the recent Board Meeting
DATE: 3RD MARCH 2014
NUMBER OF WORDS—2,500 WORDS.
TABLE OF CONTENTS PAGES
1. Introduction -------------- 2
2. Body of Report -------------- 4
3. Conclusion -------------- 7
4. Appendices --------------- 8
5. References ---------------- 9
INTRODUCTION: Derivatives have been traded for centuries, with early examples including tulip bulb options in Holland and rice futures in Japan during the 17th century. But futures markets were relatively small until the 1970s when developments in pricing methodology spurred spectacular growth. The derivatives market has grown 100-fold over the past 30 years, with estimates of the current size of the market at more than $200 trillion, based on the notional value of contracts outstanding. (Andrew Balls 2014) Taking out short term derivatives or taking positions in them by Multi-National Companies, Firms or organization be it large or small, have become essential and necessary due to incessant fluctuations in exchange rate. Today's sophisticated international markets have helped foster the rapid growth in derivative instruments. As long MNC’s or individuals deal in more than one currencies whether in payables or in receivables. Given the potential shifts in the supply or demand for currency, firms and individual who have assets or business interest in foreign currencies that deals in businesses that