A Study of the Foreign Exchange Hedging Strategies: Using an Import Trading Company as a Case Study

• Main Authors: Li-Yung Chiang, 江立雍
• Other Authors: Day-Yang Liu
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/cw9je5

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 105 === We now live in an era of information explosion where both the import and export traders around the world are facing the crucial ordeal that traditional import and export traders can no longer profiteer from unequal access to information or the information gap as continuous innovation has been emergent in the field of e-business. Thus, in the low-margin and high-competition era, each factor that can possibly influence the gross profit is worth attention and scrutiny by the import and export traders. In this study, a case study is conducted mainly on the import trader’s euro export data acquired between 2014 and 2016. The data of the import trader’s internal operations on foreign exchange hedging instruments are analyzed and summarized to realize whether the performance of the import trader on the use of the foreign exchange hedging strategy can effectively raise the profitability of the import trader. This study also hopes to provide future reference for other import and export traders in the future to find the most appropriate foreign exchange hedging strategy. The result of this study is summarized as follows: 1. foreign exchange hedging strategy adopted by the case company is to use the natural hedging method (foreign exchange settlement) or the foreign exchange options (the buying call options to give up premiums) to achieve the effect of risk aversion in the specific month. III 2. Out of the 36 account settlements conducted by the case company between 2014 and 2016, 27 account settlements concern the case company’s natural hedging operations on euro account settlement based on their custom conditions while the other 9 account settlements concern the case company’s foreign exchange options to buy USDs with EUROs. 3. The case company’s foreign exchange hedging operations between 2014 and 2016 exert 11.98% of the total influence on the growth of its gross margin. The data show that the case company’s foreign exchange hedging operations surely conduce to the case company's gross margin.