Hbs case hedging currency risks at

You should prepare a written analysis, and hand in two copies of your analysis on April 23 in class. The remainder of your paper should support your conclusion and recommendations. Instructions: This case should be done individually.

What gives rise to the currency exposure at AIFS?

hedging at aifs excel

What would happen if Archer-Lock and Tabaczynski did not hedge at all? This support should be based on your definition of the problem and inferences that you draw from the facts of the case.

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That means, with the current spot rate of 1. View Details. In the case of a strong dollar 1. Get Essay You should download the excel spreadsheet for the case at the Blackboard, complete the quantitative analysis using the spreadsheet, and attach the spreadsheet to your case write-up to support your arguments.

Your case should address the following questions: 1.

aifs hedging case solution excel

In addition the company should continue to deal with 6 different banks to reduce the counterpart risk. How should NG go about convincing its customers? The text analysis of your case should be about pages double-spaced.

Did competitors that maintain non-compliant practices have an Achilles heel that NG could exploit?

Hedging currency risks at aifs pdf

If actual dollar costs were lower than expected, the impact would be positive. What gives rise to the currency exposure at AIFS? Structure is important for your argument to be lucid and transparent. In the following table the impact on the costs in different scenarios are summarized using the same methodology as in the table above. What would happen if Archer-Lock and Tabaczynski did not hedge at all? Did competitors that maintain non-compliant practices have an Achilles heel that NG could exploit? Since the company is highly affected by news of war, terrorism and political instability, events which are impossible to predict, I would suggest to alter their hedging policy and use mainly options for hedging. Points will be deducted for grammar mistakes and typos. Use the forecast final sales volume of 25, and analyze the possible outcomes relative to the "zero impact" scenario described in the case. Only hard copies of the case analysis are accepted.
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Hedging Currency Risks at AIFS Essay Example