Mostafa Nezamparvar

Page 70 of the supplied copy

Lesson 56: Managing Exchange-Rate Changes

English translation of the author’s Persian text. Source-page references refer to the original edition.

Author: Mostafa Nezamparvar · Original book text

Examining contractual tools for reducing exchange-rate risk
An educational illustration created with AI for this section of the book.

Managing Exchange-Rate Changes

(Currency Risk Management).

You need to know how to manage exchange-rate changes. One day the dollar rises, the next it falls, and if you are not careful your entire profit disappears! Tools such as forward contracts and futures contracts exist that you can use to protect yourself against currency fluctuations. But judging by your situation, the only agreement you have ever encountered seems to be the rules of snakes and ladders!