Finance case study – hedging currency risks at aifs


FIN 417

 

HBS Case: Hedging Circulation Risks at AIFS

 

 

Where to get the case: Hedging Circulation Risks at AIFS, Harvard Business School Case, #9-205-026, 2007. This circumstance can be ordered quickly from https://cb.hbsp.harvard.edu/cbmp/access/17082330. Online download price: $3.95.

 

Instructions: This circumstance should be performed partially. You should qualify a written anatomy, and influence in two copies of your anatomy on April 23 in tabulate. Only firm copies of the circumstance anatomy are certain. I obtain resign one of the copies to the Dean’s appointment for tribute object. Each student should too adduce his/her own observation of the write-up to tabulate, as well-behaved-behaved as the circumstance itself, so that we can associate to the specifics in our discourse. The passage anatomy of your circumstance should be environing 3-5 pages (double-spaced).  You should download the abound spreadsheet for the circumstance at the Blackboard, consummate the ascititious anatomy using the spreadsheet, and apply the spreadsheet to your circumstance write-up to buttress your topics.

 

Your write-up should commence delay an inauguration provision that defines the ocean example in the circumstance and your recommended disentanglement. The remnant of your paper should buttress your misentry and recommendations. This buttress should be established on your specification of the example and inferences that you pull from the basis of the circumstance. Structure is significant for your topic to be bright and diaphanous.

 

The grading obtain be established on the capacity of your anatomy and answerableness. Points obtain be deducted for style mistakes and typos.

 

Your circumstance should oration the forthcoming questions:

 

1.      What gives stir to the circulation pitfall at AIFS?

 

2.      What would bechance if Archer-Lock and Tabaczynski did not hedge at all?

 

3.      What would bechance delay a 100% hedge delay before? A 100% hedge delay options? Use the forestall terminal sales body of 25,000 and dissect the potential outcomes referring-to to the "zero impact" scenario forcible in the circumstance.

 

4.      What bechances if sales bodys are inferior or higher than expected as outlined at the end of the circumstance?

 

 

5.      What hedging conclusion would you pleader?