geographies relative to its competitors.( JetBlue, 2016).JetBlue has been engaged in fuel cost hedging to protect itself from volatile fuel prices this has allowed the airline to follow their business
Hedging is a process in business where an attempt is made to reduce the exposure to risk that a firm or even an individual may have. Hedging may refer to something as simple as diversification or auditing, to complex products such as derivatives. Derivatives among other hedging tools are a core part of major industries, and as a result a sufficient amount of research has been done to analyse the effectiveness of these tools, including in the energy sector. How have other hedging tools, similar or
Delivering occur immediately therefore there is no risk of inflation and interest rate. The inflation and interest rates are main key components of valued or devalued currency. Disadvantages of spot market The spot market is faced by several risks including transaction risk, translation risk and government fiscal policy. Transaction risk; This risk is associate with the exchange rate between two different currency during the process
quantifiable in about one percent of world trade. According to Wong (2004) had found that the countries trade in exports can benefit from increasing in exchange rate volatility. The use of disaggregated bilateral data in the analysis has several advantages compared
Nowadays, there are more than 160 different currencies used every day to conduct various transactions all around the world. In every country prices are expressed in units of currency, either that issued by the country’s central bank or a different one in which individuals prefer to denominate their transactions. The value of the currency itself, however, can be judged only against an external reference. This reference, the exchange rate, thus becomes the fundamental price in any economy. (The Economist
access to capital markets, enhancing the attractiveness of the company’s shares to investors by reducing the costs of information gathering, increasing the liquidity of the company’s securities, and reducing the cost of raising capital are the man advantages of risk disclosure.Berger and Hahn (2003) confirmed the argument that risk disclosure a choice variable set by management in spite of being