Dollarization and Expansion option: Difference between pages

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imported>Doug Williamson
(Add alternative name.)
 
imported>Doug Williamson
(Link with related real option pages.)
 
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1. ''Currency - emerging markets - US dollar.''
The valuable operational choice available to the owner of a project or of a business, to expand it.


A process in which a country starts to accept a foreign currency for certain purposes, in parallel with its domestic currency.
This is an example of a real option.
Other examples of real options include the options to contract, defer or abandon the given project or business.


Most commonly an emerging market country might start to accept a more established foreign currency, for example the US dollar.


This process is also sometimes known as ''currency substitution''.
== See also ==
* [[Real option]]
* [[Real options valuation]]
* [[Deferment option]]
* [[Contraction option]]
* [[Termination option]]
* [[Abandonment option]]


 
=== Other resources ===
A small number of countries have discontinued their domestic currencies and adopted the foreign currency in full.
* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]]
 
For example, Panama's currency is the US dollar.
 
 
2.  ''Financial modelling - spreadsheets - construction - cell references.''
 
In financial modelling with spreadsheets, dollarized - or absolute - refers to cell references when they're copied around the spreadsheet.
 
Fully absolute cell references - for example '''$A$1''' in Excel - will stay as $A$1 wherever we copy them within the spreadsheet.
 
 
This kind of cell reference is sometimes also known as an anchored - or fixed - reference.
 
Contrasted with a standard relative cell reference - for example '''A1.'''
 
Relative cell references are the default.
 
 
==See also==
*[[Currency]]
*[[Currency substitution]]
*[[Default]]
*[[Dollar ]]
*[[Emerging market]]
* [[Excel]]
* [[Financial modelling]]
* [[Relative]]
*[[Sand Dollar]]
* [[Spreadsheet]]
*[[United States]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]
[[Category:Trade_finance]]

Revision as of 19:47, 20 November 2015

The valuable operational choice available to the owner of a project or of a business, to expand it.

This is an example of a real option. Other examples of real options include the options to contract, defer or abandon the given project or business.


See also

Other resources

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