Foreign Exchange Volatility: Group hedging theory and Lebanese SMEs

Middle East University
Faculty of Business Administration

Foreign Exchange volatility: Group hedging theory and Lebanese SMEs

A Thesis
Presented in Partial Fulfillment of the Requirements for the Degree
Master of Business Administration

By
George Issa

June 2014

FOREIGN EXCHANGE VOLATILITY: GROUP HEDGING THEORY
AND LEBANESE SMEs

A thesis presented in partial fulfillment of the requirements for the degree
Master of Business Administration

By: George Issa

APPROVAL BY THE COMMITTEE:
------------------------------- -------------------------------------

Paul Abboud, Ph.D., Chairperson
------------------------------- ------------------------------------Denny Rumamby, Ph.D., Second Reader
------------------------------- ------------------------------------Patrizia Hongisto, Ph.D., Faculty Dean

Date approved
-----------------------------

I

Dedication
To everyone who will make use of my research.
To everyone who will enjoy reading every page!
To mom and dad and my lovely sisters.
To the memory of my uncle.

II

Acknowledgments
I would like to thank my university’s higher management represented by our kind Dean of Business Dr. Patrizia Hongisto.
A feel of gratitude remains to my thesis mentor, Dr. Paul Abboud who gave me the helping hand to come up with this final thesis. Big thanks to my second reader, Dr. Denny Rumambi for his fruitful comments.
Thanks extended to my bosses at the Lebanese Armed Forces for the opportunity they granted me to follow the MBA program at MEU.
To my family and friends whom they missed my presence during the long hours spent preparing for this thesis: Please understand me, I love you all.
I am thankful to everyone who responded to my survey questions and that I might have bothered with my calls to get the required information that helped the success of this research.

III

Abstract
Foreign Exchange volatility has become a major obstacle for international
traders.

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