Abstract
Given the continuing level of uncertainty and volatility in the foreign exchange market, as well as the interest rate market, risk hedging plays a special role in the organization’s activities. However, the question of choosing an effective hedging instrument still remains open. In this article, the authors proposed an algorithm that, based on the VAR calculation model using historical data, selects the appropriate derivative financial instrument. All stages of the algorithm are considered. Using the considered algorithm allows companies to reduce uncertainty, as well as choose a tool that will allow them to get the highest profitability.
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