I will pay for the following article International Finance: Hedging Strategies. The work is to be 9 pages with three to five sources, with in-text citations and a reference page.

I will pay for the following article International Finance: Hedging Strategies. The work is to be 9 pages with three to five sources, with in-text citations and a reference page. Hedging using arbitrage has the desired effect mainly in cases of cross border finance and trading in more than one currency as the inefficiency in the pricing at the market is exploited by the method. In the case mentioned above, the fact that the interest rate is higher in case of the pound sterling, as well as the relatively higher premium earned from the dollars, justifies the advantages of this method.

Another hedging strategy that is widely used with respect to the foreign currency transactions in order to maximize the profits is that of Offsetting forward contract to accomplish risk aversion on the loss of revenue through an exchange. The process of offsetting forward contract predominantly involves the process of purchasing a specific foreign currency which will be of need to the company in the future for investment or payment of bills due in another form of currency. This argument by Patrick Cusatis and Martin Thomas (2005)i that the offsetting forward contract is not only a successful hedging strategy but also provides the flexibility of deploying the currency conveniently instead of undergoing more than one conversion from one currency to another.