Pricing and Application of Contingent FX Hedges

Pricing and Application of Contingent FX Hedges

In this video, we look at the practicalities of prosecuting a DC hedge, as well as some case studies to highlight the robustness of this product. We will also spend some time discussing the different market risks that can be covered by such a derivative technology.
Overview

This video explores contingent transactions in depth, with a worked example to show pricing and the practical implications of how the transaction works. We examine other situations where this type of transaction may be apt. It also discusses the execution process and key documentation required to implement a transaction. The video concludes with case studies to highlight the robustness of the product.

Key learning objectives:

  • Grasp how deal contingent transactions are priced and quoted

  • Understand how a DC deals with the fact that the completion date of an M&A is uncertain

  • In which other events and for which market risks can the DC product be used?

  • Understand how a DC trade is executed and the key documentation points

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Summary
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Expert
Selim Toker

Selim Toker

After a 30-year career in Investment Banking, Selim Toker transitioned to the FinTech space and is currently the Chief Strategy Officer of incard, a digital banking and financial services platform targeting e-commerce and digital entrepreneurs. Prior to that Selim spent 17 years at UBS and 12 years at Nomura, focussed on derivatives advisory, structuring and marketing.

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