There’s No Free Lunch with FX Derivatives Milton Friedman, the American economist who received the 1976 Nobel Memorial Prize in Economic Sciences, wrote a book titled "There's No Such Thing as a Free Lunch" and that saying is particularly applicable for understanding currency derivatives. When selecting a foreign exchange hedge instrument, firms can benefit from recognizing the differences and similarities of common derivatives such as a forward contracts, vanilla options, or zero cost collar option combinations. The FX Spot & Derivatives course explores the concepts of forward contracts, put and call options, and zero cost collars and examines their pricing variables and payoff profiles. Many firms seek protection from unfavorable changes in exchange rates while also seeking to retain the ability to participate in favorable rate movements. This 1 hour program will reveal the mechanics of the most common currency derivatives, and underscore how “there is no such thing as a free lunch” with FX derivatives. Want full access? Click to subscribe today! If you are interested in learning more about foreign exchange deritatives and how they are used in practice, sign up for our Foreign Exchange Risk Management Training today and access our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Learn the fundamentals of currency risk management by taking the FX Initiative for your international business today! Click here to start your FX Risk Management Training today! Cheers to your global organization's success abroad, The FX Initiative Team support@fxinitiative.com May 8, 2017By FX Initiative FX Spot & Derivatives Collars, Continuing Professional Education, CPE, Currency, Foreign Exchnage, Forward Contracts, Hedging, Put Options, Risk Management, Call Options, FX, Option Combinations 0 0 Comment