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Frasers’ Hugo Boss exposure falls to $691 million
Global Banking & Finance Review®
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LONDON (Reuters) – British sportswear retailer Frasers Group said on Friday its maximum exposure to German fashion house Hugo Boss had fallen to 580 million pounds ($691 million).
LONDON (Reuters) – British sportswear retailer Frasers Group said on Friday its maximum exposure to German fashion house Hugo Boss had fallen to 580 million pounds ($691 million).
Frasers, which was formerly called Sports Direct and is on a drive to move upmarket, said it now holds 3.9% of Hugo Boss stock directly and a further 25% via the sale of derivatives known as put options.
($1 = 0.8391 pounds)
(Reporting by James Davey; editing by Sarah Young)
Exposure in finance refers to the amount of risk an investor or company faces in relation to a particular asset or investment. It indicates the potential for loss or gain based on market fluctuations.
Put options are financial contracts that give the holder the right, but not the obligation, to sell an asset at a predetermined price within a specified timeframe. They are often used for hedging against declines in asset prices.
Stock ownership refers to holding shares in a company, which represents a claim on part of the company's assets and earnings. Shareholders can benefit from dividends and capital appreciation.
The London Stock Exchange (LSE) is one of the largest stock exchanges in the world, where shares of publicly traded companies are bought and sold. It plays a crucial role in the global financial market.
A derivatives market is a financial market where instruments like futures and options are traded. These contracts derive their value from underlying assets, such as stocks, bonds, or commodities.
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