کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
10478741 931357 2005 14 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Denomination of currency decisions and zero-cost options collars
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Denomination of currency decisions and zero-cost options collars
چکیده انگلیسی
Can firms benefit from borrowing in foreign currency even when they do not have cash flows in that currency? If exchange rates follow a random walk, a company could minimize expected costs by borrowing in the currency with the lowest nominal interest rate, but will increase the volatility of borrowing costs. This study uses zero-cost currency options collars as a means to cap increases in the variability of interest costs. Applied to yen versus dollar borrowing decisions from 1994 to 2001, the strategy offers promise for firms that desire to lower expected costs by borrowing yen, but want to limit the added risk.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Multinational Financial Management - Volume 15, Issue 1, February 2005, Pages 85-98
نویسندگان
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