I have a 3 page Int'l Finance paper to turn in and I would like some ideas. The paper is on how my company would use one or more of the following financial vehicles to invest money: Swaps Options Futures Forwards I work for a non-profit health care facility that aquires most of its funds through state funding and grants. Any Ideas?????
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I would think an easy one might be: Let's say your company will pioneer a new facility in Russia in 1 year (hypothtical). You know the construction cost will be $500 million Rubbles. Assuming Russian currency is on a float, you don't know how many dollars that will be in the future, so you decide to use a forward contract to lock in an exchange price. Separately, you may decide to purchase a one year option on Rub. exchange rate that allows you to exchange at a certain rate but does not obligate you to do so.
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