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Technology Stocks : Compaq
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To: Night Writer who wrote (14716)1/23/1998 12:36:00 PM
From: hpeace  Read Replies (1) of 97611
 
nw, you have to hedge the currnecy you sell in another than $'s.
you invoice them at a point in time.
then if the currcny rate changes til you collect the money you have to protect yourself.
so, you can buy and sell currency instruments that make sure that if you lose money on collecting then your currnecy instrument gains that
amt.
the negative is if you would have gained money on the excahnge rate then that is a gain and you lose on the instrument.
it's a wash...
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