22. In 2006 and 2007, because of concerns about the South Korean currency (the won) appreciating, export

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22. In 2006 and 2007, because of concerns about the South Korean currency (the won) appreciating, export companies in that country entered into a derivatives contract called a “knock-in, knock-out contract.” Basically, this was an agreement to hedge against an appreciation of the won. Why would South Korean exporters want to hedge against the won appreciating?

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Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

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