Derivatives have emerged as the key financial instruments to hedge financial risk. The volatility and uncertainty in the global market has forced investors to use derivatives to hedge their positions. The speculator, being a risky player in the market, needs sound strategies for speculation,...

There are a variety of strategies which are designed to manage foreign exchange risk. Each of them, however, is constructed under specific assumptions, for a specific risk profile. It is often the case that several strategies are applicable to a given scenario. The question arises as to which...