Hedging a Corporate's FX Exposure
The client conversation an FX sales desk has daily.
A US corporate expects €100m of revenue over the next year. Walk me through the hedging options and what you'd recommend.
3 questions reported in Goldman Sachs FX interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
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Model builds
Built in the spreadsheet grid
Carry, curve shape, storage economics and policy sensitivity. 3 questions
The client conversation an FX sales desk has daily.
A US corporate expects €100m of revenue over the next year. Walk me through the hedging options and what you'd recommend.
The foundational calculation on any FX desk.
EUR/USD spot is 1.0800. US rates are 4%, euro rates 2%, both for one year. What is the one-year forward, and why can't it be anything else?
EM FX desks and macro funds test the mechanism, not just the history.
What conditions precede an emerging market currency crisis, and what does the central bank actually do about it?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Goldman Sachs FX.