The Strategy Research Of Avoiding Foreign Exchang Risk For Chinese Foreign Trade Enterprise By Using Foreign Exchange Option

Foreign exchange risk is one of the most primary risk for foreign trade enterprise’s profits. In traditional market, enterprises avoided risk by forwards the foreign exchange swaps and currency swaps.The emergence and the development of the option create new opportunities for maintenance and appreciation of the capital belongs to the enterprises, and the combination of currency options also diversifies the financial transaction. If the enterprises can not take effective measures, they will loss most of their profits. Thus, making good use of financial tools a nd advanced technology may helps non-financial enterprises a lot, which has important theoretical and pratical significance. According to statistics, at the end of September 2014, foreign exchange options market trading volume totaled $ 50 billion on the interbank, which is two times as much as annual turnover. In order to promote the further development of the foreign exchange market, the relevant departments are brewing non-bank financial institutions to enter the interbank foreign exchange market, and plans to follow the steps to exchange business items to capital items from the business expansion. Part of the non-bank financial institutions ha s obtained access to qualified this business, with strong foreign investment in the region that they will have a lot of foreign exchange options trading needs.This paper is a combination of theory and cases analysis, as well as qualitative and quantitative analysis methods. The first chapter elaborates this article research background and significance,and reviews of the literature of foreign exchange risk management at home and abroad.The second chapter of this article introduces from the basic concept,expounding briefly the currency options and related theory, including the classification, thefeatures, the pricing rules. And narratives from the Angle of policy on China’s currency options parsed, summary of currency options conditions of use.Enterprise foreign exchange risk summary on the related concept s, this paper points out the necessity of foreign exchange risk management, the use of currency options, the rationality of the enterprise risk management and related policy changes in China in recent years to overview. The third chapter inducts the presen t situation of our country enterprise on risk of currency options, and put forward present problems of the foreign exchange risk aversion. The fourth chapter sums up the problems existing in the enterprise current position, analyzing and referring to overseas use of foreign exchange option to avoid the foreign exchange risk of implementation. Chapter five analyze the detail for different situations using different types of currency options and their combination to avoid foreign exchange risk s. Chapter six steps of our country enterprise by using foreign exchange option, illustrate the design train of the thought of foreign exchange risk aversion and put forward the strategies. Chapter seven perpose the suggestion of the using exchange options to our country enterprise risk countermeasures. And the eighth chapter outlook for currency options application prospect in the future.