Role of currency futures in risk management Essay

Role of currency futures in risk management - Essay Example Forward contracts have certain advantages over currency futures but their disadvantages cannot supersede the advantages provided by currency futures. Because of their standardized features and a high liquidity in the market, currency futures have gained widespread importance. Even with the advent of sophisticated derivative instruments such as options, yet the currency futures lie ahead of them because of the cost factors and their advantages in providing superior performances in covered hedges. Introduction In the contemporary world, currency risk management is gaining a widespread importance because of the globalization. Companies and individuals who are exposed to foreign exchange risk, which implies that either they have imports or exports which will cause their domestic purchasing power to decline by converting a foreign currency to a home currency will always aim to minimize this risk. These currency risks arise during certain conditions; when the firm or businesses have assets or liabilities which are expressed in terms of foreign currency. We can define foreign exchange risk more specifically as the risk faced due to fluctuating exchange rates. For instance, if a Malaysian businessman exports palm oil to one of the European countries and if he expects payments to be made in Euros, than he is exposed to considerable amount of foreign exchange risk if the Euro depreciates against the Malaysian Ringgit. In case if it happens, the Malaysian trader will get fewer amounts of Ringgits in exchange of Euros thus a successful business venture might turn out to a blunder because of poor risk management practices. The trade transactions are shelved between the countries as businesses are unwilling to bear foreign exchange risk. As the fear of foreign currency risk looms over the businesses, it can reduce its trade with these countries. But as the world has stepped ahead in the technological breakthroughs, so it has been able to develop financial tools which can hel p the traders to minimize the risk faced in the businesses. The derivatives market primarily consists of many instruments such as forwards, futures, swaps and options. The aim of this paper is to discuss about the role of currency futures and how they provide an advantage over other derivative instruments in managing foreign exchange risk. A currency futures contract is an agreement between two parties to buy a particular currency at a specific rate in the future. Future contracts are identical to forward contracts but they differ in a sense that they are traded on the exchange and are more liquid than forwards. Futures are liquid as they have a formal exchange like stocks where you can trade your legal contracts. Similarly, they are standardized contracts like shares and you can remove them from your portfolio in certain chunks. We can illustrate futures currency with the help of an example involving two parties who are exposed to foreign exchange risk. The party which is exposed t o the risk of an appreciation of value in a currency will buy futures to protect. These are usually parties who have revenues or exports and they feel that the value of their home currency appreciates making the currency in which the sales are denominated weak thus resulting in lower revenues. To hedge their position, they enter in to a futures contract and buy a certain amount of

Animal Farm: Communism Through The Eyes Of George Orwell Essay examples

Animal Farm: Communism Through The Eyes of George Orwell Throughout history, writers have written about many different subjects based on their personal experiences. George Orwell was the pen name of Eric Blair. He is one of the most famous political satirists of the twentieth century. He was born in Bengal, India in 1903 to an English Civil Servant and died in 1950. He attended Eton from 1917 to 1921, and served with the Indian Imperial Police in Burma from 1922 to 1927 before moving to Europe.Two of his most famous books, Animal Farm, written in 1946, and Nineteen Eighty-Four, written in 1949, were written about the political and social environment surrounding his life. "The driving force behind his two satires is an intense revulsion against totalitarianism, combined with an even stronger revulsion against its defenders among left-wing intellectuals."1 In most of George Orwell ¹s books and essays, there is a strong autobiographical element due to the fact that he spent many years living with Communists in northern Great Britain (a small number of people started to follow Communism in northern Great Britain when it started in Russia). George Orwell ¹s writing was affected greatly by his personal beliefs about Socialism, Communism, Fascism, and Totalitarianism, and by the revolts, wars, and revolutions going on in Europe and Russia at the time of his writings. George Orwell was a Socialist2 himself, and he despised Russian Communism3, and what it stood for. Orwell shows this hatred towards Communist Russia in a letter he wrote to Victor Gollancz saying, "For quite fifteen years I have regarded that regime with plain horror."4 Orwell wrote this letter in 1947, ten years after announcing his dislike of Communism. However, he had thought a great deal about Communism and what he disliked about if for a long time before he announced it to the public. Orwell "did not expect anything good from the Communist"5 and therefore Communism personally did not affect him, but "He was concerned with it (Communism) only because it was a problem for others."6 In Animal Farm, "an animal fable satirizing Communism,"7 Orwell uses farm animals in England to satirize Russian Communism and its leaders. One animal he uses is a pig named Napoleon, whose counterpart in the Russian Revolution is Joseph Stalin. After Napoleon takes charg... ...r, Alfred G. "Marx, Karl." World Book Encyclopedia.1988 ed. Orwell, George. Nineteen Eighty-Four. New York, NY: Harcourt Brace Jovanovich, Inc., 1949 Orwell, George. Animal Farm. New York, NY: Harcourt Brace Jovanovich, Inc., 1946 Stansky, Peter and Abraham, William. Orwell: The Transformation. New York, NY: Alfred A. Knopf, Inc., 1979 Stansky,Peter. On Nineteen Eighty-Four. San Francisco, California: W.H. Freeman and Company, 1983 Wadsworth, Frank W. "Orwell, George" World Book Encyclopedia. 1988 ed. Woodcock, George. The Crystal Spirit a study of George Orwell. Boston, Massachusetts: Little, Brown and Company,1966 Voorhees, Richard J. The Paradox of George Orwell. New York, NY: Purdue Research Foundation,1961 "Stalin, Joseph." World Book Encyclopedia. 1988 ed. "Lenin, V.I." World Book Encyclopedia. 1988 ed.

Juan De Sepulveda Belittes the Indians

Juan Sepulveda was a man who strongly felt he could define a person or group as â€Å"civilized or â€Å"barbarians.† Sepulveda’s purpose in his article/primary source analysis was mainly to inform the Spanish about the Native Americans â€Å"barbaric† society and how could either try and convert them to Christianity or destroy them. His audience is mainly the Spanish royalty, and also the Christian community. Sepulveda explains what the government and activity of the Natives are like, and degrades who they are so his audience could have a feeling whether they should be enslaved or converted.During Sepulveda’s article/primary source, he mentions how he saw the government with â€Å"†¦ [No] written laws, but barbarian institutions and customs †¦ what temperance or mercy can you expect from men who are committed to all types of intemperance and base frivolity, and eat human flesh? (lines 17-20).† So far Sepulveda has had nothing positive to say about the Natives, and feels that they are far from civilized. Personally, this doesn’t seem too barbarous because everyone has a custom to something Sepulveda writes in a way that persuades that the natives are basically cavemen who know no better, compared to the Spanish norms.Although he is not lying since the natives eat human flesh, which would be barbarous, but its only safe to say that the natives are far from modern day society and the roles. Another piece of evidence that Sepulveda shares is that the natives would â€Å"wage continual and ferocious war upon one another with such fierceness that they did not consider a victory worthwhile unless they sated their monstrous hunger with the flesh of their enemies. (lines 22-24).† This time he proves a point that they would be barbarous, stating that the only reason Natives fight other Natives would be for food. As true as this may be, Sepulveda fails to tell the whole story.Indians would not fight daily for th e flesh of other humans, or else they would be extinct. And hidden to Sepulveda mind, he didn’t think about the diversity of the Natives and their different groups, so it becomes more clear that his Goal is to make them seem like savages so the Spanish would feel more bias on enslaving them rather than them being converted first. On one positive note, it is clear Sepulveda wanted to say something positive about the Natives, saying â€Å"†¦ Although some of them show a certain ingenuity  for various works of artisanship, this is no proof of human cleverness. (lines 28-29).†If all Sepulveda has been saying was negative things, and have one positive note, then it must have really caught is attention that the Natives have a thing for artisanship. This may be a key point in Sepulveda’s persuasion to converting the Natives to slavery. To say they are crafty would show that they are of use to something. This sentence he writes can be easily summarized that they have a talent, but the Spaniards will always be the superior to the Natives, as said in line 33, â€Å" [New Spain] †¦ are considered the most civilized of all.† To break down my analysis of Sepulveda’s article would be easily described in lines 57 and 58 that the â€Å"[Natives] have stated quite clearly that they have been born into slavery and not to civic and liberal life.†All that Sepulveda wants is a group of slaves that would later be converted to Christianity for the use and the good of the Spanish goals. It was clear s day Sepulveda wanted to make the Natives look bad (and good enough) to make the Spanish ruler feel they would come good use to slavery. Broken down into a nutshell, if the Indians look useless enough, but they have â€Å"artisanship,† then what better place to be than slaves. And the goals of the Spaniards are to spread their Christianity, so why not make them Christians as well.

Gender Identity Essay - 1288 Words

Gender Identity Gender identity has always been a controversial subject because everyone has a different opinion or feeling about the subject, but until everyone fully understands the immense history, the different types of identities, laws that have been passed and changed over the years, money that has been spent, bullying that takes place every single day, or the hundreds of controversies that have been argued about the issue one will never begin to understand the actual subject of gender identity. Both sexual orientation and gender identity cover the areas between the male-typical and female-typical poles. These can also be classified as the binary genders. Homosexuality can be considered to be associated with gender-atypical†¦show more content†¦Gender identity will continue to change the world, just as it has for decades. In today’s society, there are girls who play sports and boys who decide to dance. Children are no longer growing up in the same world their pa rents did, where gender roles were clearly divided. But even in today’s society, there are times when classifying as boy or girl makes a difference in how children experience the world (What’s Your†¦). Gender could be considered a sliding scale, with a wide variety of options that cover beyond just male and female. Some transgender individuals prefer the word non-binary, because it represents all levels of this scale. Other terms like genderqueer or gender nonconforming, also represent a mix of male and female, or the sense of having no gender at all (Vorenberg). People typically think about transgender as meaning gender reversal, where someone identifies as the opposite sex from their birth sex. But transgender is an umbrella term used to cover a wide variety of people whose gender identity is different from the one they were assigned at birth. One of the first Americans to fight in the courts for recognition as non-binary is Jamie Shupe. Shupe made history after a ruling made them the first Brittain person in the U. S. to be legally allowed to identify as neither male nor female. Shupe believed their gender identity was more feminine than masculine, but was not interested in changingShow MoreRelatedGender Identity Essay965 Words   |  4 PagesGender Identity Society should be more open minded with the topic of gender identity. Our society does not like rapid changes when they are publicly made; there is always a dispute or an opposition against those unexpected changes. The LGBTQIA+ (lesbian, gay, bisexual, transgender, queer, intersex, and asexual) community is the â€Å"rapid change† that society finds difficult to deal with. Although, this community has always existed, but it has never been publicly recognized like it is today. Gender IdentityRead MoreEssay Gender Identity1902 Words   |  8 PagesGender Identity Gender identity is an extremely relevant topic today. Many people have their own ideas on what is right and what is wrong for each gender to act, and these people are very vocal and opinionated about their ideas. One recent controversial story about gender identity was when a couple refused to tell anybody whether their child named Storm was a boy or a girl. Their oldest child, Jazz, who was originally born male, â€Å"always gravitated to dresses, the colour pink and opted for long hairRead MorePersuasive Essay On Gender Identity1719 Words   |  7 PagesThe struggle for equality has been intense, and still continues to this day. With this being said, much progress has been made in establishing respect and external acceptance for all individuals sense of identity. For example, in 2015 the Supreme Court ruled in favor of Same Sex Marriages, marking a pivotal point in the civil rights movement for the LGBTQ community. For many, this act helped to support their sense of self, a righ t that been denied for so long. The United States effectively validatedRead More Gender Identity Disorder Essay1594 Words   |  7 PagesGender, Sex, Sexuality: Separate and NOT equal. First and foremost, a few key terms to keep in mind while reading this paper. Sex†: refers to the biological and physiological characteristics that define men and women.[1] â€Å"Gender†: refers to the socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.[2] â€Å"Gender identityâ€Å": an individuals self-conception as being male or female, as distinguished from actual biologicalRead MoreEssay about Gender Dysphoria Caused by Gender Identity776 Words   |  4 Pages Gender Dysphoria caused by Gender Identity Introduction Gender as defined by society as a division between biological sex and the roles you must take on in society. In reality gender is a true spectrum that does not follow a simple linear pattern. There are three major aspects that make a person who they are inside. These aspects are Sex, Gender and Gender Identity. Gender Identity Gender identity is basically the concept that gender is not easily divided into two classic genders as isRead More Gender Identity and Social Structures Essay examples1293 Words   |  6 PagesGender Identity and Social Structures What is meant by identity? Firstly this essay is going to explore what is meant by identity. Identity is made up of individual characteristics by which a person is known. Internal factors such as physical appearance, personality, mental ability and sex would have an effect on a person’s identity. Then there are the external factors such as family, class, religion, culture, occupation and nationality which would influence one’s identity. Then, even beyondRead MoreGender Identity Disorder Essays1031 Words   |  5 PagesLiving a life feeling out of place, with the wrong feelings, and in the wrong body, for a person with Gender Identity Disorder, this is how they feel day to day. According to the DSM-IV-TR, Gender Identity Disorder is characterized by a strong, persistent cross-gender identification, persistent discomfort with his or her sex or sense of inappropriateness in their gender role of that sex. According to the American Psychiatric Association (APA), children, adolescents and adults who exhibit a preoccupationRead More Psychological Positions on Gender Identity Essay1901 Words   |  8 Pagespsychological positions on gender identity. These positions are; binary gender identity and diverse gender identity. After I have explained both positions I will analyze the two and put forth my argument that diverse gender identity captures a more accurate depiction of gender. This psychologically charged debate over gender identity and its presence in society has taken the form of intuitions over social necessity. In where one side is arguing that traditional binary gender norms are no longer relevantRead MoreHow Is Gender Identity Influenced by Social Structures? Essay1292 Words   |  6 PagesWhat is meant by identity? Firstly this essay is going to explore what is meant by identity. Identity is made up of individual characteristics by which a person is known. Internal factors such as physical appearance, personality, mental ability and sex would have an affect on a persons identity. Then there are the external factors such as family, class, religion, culture, occupation and nationality which would influence ones identity. Then, even beyond all these personal and social structures,Read MoreEssay about Factors That Influence Gender Identity756 Words   |  4 PagesIdentity is most simply defined as a persons own sense of self; their personal sense of who they are. Identity development is intrinsically linked with adolescence because, according to Santrock citing Marcia Carpendale, ...for the first time, physical, cognitive, and socio-emotional development advance to the point at which the individual can sort through and synthesize childhood identities and identifications to construct a viable path toward adult maturity. We often see the results of this