The aim of this thesis is to investigate how members of Australian superannuation funds can manage risks arising from uncertain security returns and unpredictable mortality so as to ensure a steady income stream during retirement. In chapter 2 we note that the proportion of superannuation assets invested in foreign assets has increased over the past two decades, exposing investors to currency risk. Surveys of superannuation funds verify that most international bond holdings, but not equity holdings, have been hedged for currency risk. We test the mean-variance efficiency of this practice against two alternative hedging strategies: a conventional forward hedge and a selective hedge conditioned on the domestic-foreign interest differential. Implementing optimal hedging results in portfolios whose returns stochastically dominate portfolios constructed under restricted equity hedging, according to our new adaptation of Barrett-Donald (2003) tests. Selective hedging works best for equities and conventional hedging for bonds. Chapter 3 applies a discrete-time Merton (1971) model to questions of optimal decumulation and asset allocation for self-funded retirees drawing down lump-sum retirement benefits. Risk management is taken to revolve around protecting a pre-specified minimum consumption stream. Risk tolerances and lifetimes are allowed to span a range of possibilities. In the case of an agent living to age 90, ideal investment in equity-type assets increases gradually from 27-43 % over remaining life. This is much lower than the 55-60% observed among retirees. Conservative investment strategies are needed to meet consumption goals over long lifetimes. Milevsky and Young (2002, 2003) attribute the reluctance to voluntarily annuitise to a valuable real option to delay annuitisation (RODA). Chapter 4 extends the RODA analysis to the case of HARA preferences. A formula for the optimal timing of annuitisation is derived from the solution to a dynamic stochastic consumption and investment problem with uncertain lifetime. The effect of introducing a consumption floor is to reduce the delay before annuity purchase. As in the CRRA case, delayed annuitisation is associated with optimistic predictions of the Sharpe ratio and divergence between annuity purchaser and provider predictions of mortality.

Thesis "Currency Hedging Using Financial Derivates" provides comprehensive survey about hedge derivatives contracts from view of real datas. The principle is whole life of derivates contracts - from the beginning of contract settlement to expiration of agreement. Thesis shows hedge relation with czech accounting law and provides different views on potential problems and shows possible improvements in this topic.

Basic motive for the work comes out of the hypothesis of growing need of non-financial Czech companies to manage foreign exchange risk, which is demonstrated by foreign trade development. In the work, there are also specified basic species of entrepreneurial risks. Main attention of the writing is paid to currency hedging by finance derivatives, like futures, forwards, swaps and options. Single chapters are dedicated to their basic characteristics and to their function logic and, above all, to alternatives of their usage for currency hedging in different situations at Czech nonfinancial companies.

The thesis primarily deals with the foreign exchange risk in the manufactory company Šroubárna Kyjov spol. s r.o. The aim of the thesis was to evaluate the current situation in the company using selected elements of financial analysis and performing strategic analysis. Based on the analysis of the foreign exchange risk in previous years and on the basis of the CZK/EUR exchange rate forecast, measures were proposed for the next period.

Gränsöverskridande fastighetsinvesteringar har blivit allt vanligare sedan andra hälften av 1900-talet. Idag står gränsöverskridande aktörer för en relativt stor del av den årliga transaktionsvolymen i Sverige. Samtidigt har kronan under en längre tid varit svag och fluktuerat kraftigt, inte minst under senare år. Valutarisk är en vanligt förekommande risk bland multinationella företag då de ofta har intäkter och utgifter i flera olika valutor. Tillgångsvärden och löpande intäkter kan stiga lokalt men är valutakursen ofördelaktig så kan företag istället göra en förlust på sin affär, mätt i den valutan man redovisar i. Syftet med denna studie har varit att analysera sambandet mellan den svenska kronan och utländska fastighetsinvesterares beslutsprocess när de överväger investeringar i Sverige. Studien syftade till att undersöka hur valutarisk uppfattas och hanteras i transaktionsprocesser som involverar köpare, säljare, rådgivare och finansiärer. Dessutom genomfördes försök att kvalitativt undersöka de mest utbredda valutasäkringsverktygen och strategierna som används av utländska investerare för att mildra rörelser i den svenska kronan. Studien syftade också till att utvärdera effektiviteten av befintliga valutasäkringsinstrument i fastighetsinvesteringssammanhang. Studien avslöjade att den främsta oron bland gränsöverskridande investerare är marknadens likviditet. Den svenska fastighetsmarknaden har dock uppvisat en betydande likviditet de senaste åren, vilket rönt stort intresse från utländska investerare. Den svenska kronans volatilitet och oförutsägbarhet är dock fortfarande relevanta frågor i dagens globala landskap. Baserat på studiens resultat varierade synpunkterna på effekterna av en volatil krona, och att kvantifiera dessa effekter visade sig vara utmanande. Studien visade dock att den svenska kronan har viss inverkan på utländska investerares intresse för Sverige, om än i begränsad omfattning. Även om växelkurser inte rankas bland de mest kritiska faktorerna som påverkar investeringsbeslut, visar studien att det är viktigt att inte underskatta betydelsen av att överväga växelkursens dynamik, eftersom det kan påverka avkastningen på en investering avsevärt. Särskilt för investerare som följer lågrisk-strategier så kan den svenska kronans volatilitet utgöra en betydande utmaning. Studien identifierade ett fåtal fall där utländska fastighetsinvesterare valt bort Sverige på grund av kronans volatilitet. För att minska valutarisken finns olika instrument och strategier tillgängliga. Studien fann att finansiering i lokal valuta framstod som den mest använda strategin bland utländska investerare, eftersom den naturligt säkrar sig mot växelkursfluktuationer. Andra vanliga strategier inkluderar valutaswappar och utnyttjande av terminskontrakt. Studien visade dock att dessa strategier inte är optimalt utformade för fastighetsinvesteringar, eftersom de kan vara kostsamma och ofta har korta löptider. Icke desto mindre visade resultaten att dessa instrument inte är så illa lämpade för fastighetsmarknaden som man tidigare trott, eftersom det blev tydligt tidigt i studien att de flesta investerare inte hade reflekterat över deras begränsningar. / Cross-border real estate investments have become increasingly common since the secondhalf of the 20th century. Today, cross-border actors account for a relatively large share of the annual transaction volume in Sweden. At the same time, the Swedish krona has been weak for a long time and has fluctuated considerably, not least in recent years. Currency risk is a common risk among multinational companies as they often have income and expenses in several different currencies. Asset values and current income can increase locally, but if the exchange rate is unfavorable, companies can instead make a loss on their business, measured in the currency they report in. The purpose of this study has been to analyze the relationship between the Swedish krona and the decision-making process of foreign real estate investors when considering investments in Sweden. The study aimed to investigate how currency risk is perceived and managed in transaction processes involving buyers, sellers, advisors, and financiers. In addition, attempts were made to qualitatively examine the most widespread currency hedging tools and strategies used by foreign investors to mitigate movements in the Swedish krona. The study also aimed to evaluate the effectiveness of existing currency hedging instruments in the real estate investment context. The study revealed that the main concern among cross-border investors is market liquidity. However, the Swedish real estate market has shown considerable liquidity in recent years, which has attracted considerable interest from foreign investors. However, the volatility and unpredictability of the Swedish krona remain relevant issues in today's global landscape. Based on the results of the study, views on the effects of a volatile Swedish krona varied, and quantifying these effects proved challenging. However, the study showed that the Swedish krona has some impact on foreign investors' interest in Sweden, albeit to a limited extent. Although exchange rates do not rank among the most critical factors affecting investment decisions, the study shows that it is important not to underestimate the importance of considering the dynamics of the exchange rate, as it can significantly affect the return on an investment. Especially for investors following low-risk strategies, the volatility of the Swedish krona can pose a significant challenge. The study identified a few cases where foreign real estate investors opted out of Sweden due to the volatility of the Swedish krona. To mitigate currency risk, various instruments and strategies are available. The study found that local currency financing emerged as the most widely used strategy among foreign investors, as it naturally hedges against exchange rate fluctuations. Other common strategies include currency swaps and the use of forward contracts. However, the study found that these strategies are not optimally designed for real estate investments, as they can be costly and often have short maturities. Nevertheless, the results showed that these instruments are not as poorly suited to the real estate market as previously thought, as it became clear early in the study that most investors had not reflected on their limitations.

Using a sample of 141 U.S. small-cap industrial firms, I examine the firm characteristics that influence its use of foreign exchange derivatives to hedge exchange rate risk. Companies in the industrial sector produce goods and services that are used for the production of another final product. The performance of this sector is closely correlated to the level of demand from the final consumer. I find firm size, the amount of foreign sales, and firm liquidity influence the firm's decision to use foreign exchange derivatives to hedge exchange rate risk. For those firms that hedge exchange rate risk using derivatives, a second test examines the firm characteristics that influence the extent of its hedging activities. I find the extent of hedging is influenced by the amount of foreign sales, the amount of foreign assets, and the number of foreign subsidiaries the firm operates. A final test examines whether certain firm characteristics influence its decision to use options as part of its hedging operations. I find no evidence that the firm characteristics examined herein influence that decision.