AIFS organizes academic and cultural exchanges for students, sending
over 50,000 American
students abroad each year for study programs and tours. Revenues are
largely in U.S. dollars
while costs are largely in Euros. AIFS sets prices for the programs
months in advance
and guarantees its prices once they are published in catalogs. Please
answer the following
questions regarding AIFS’s currency exposure. Please type your answer
and be as precise as
you can.
1. What gives rise to the currency exposure at AIFS?
2. What would happen if Archer-Lock and Tabaczynski did not hedge at
3. What would happen with 100% hedge with forwards? A 100% hedge with options?
Use the forecast final sales volume of 25,000 and analyze the possible
outcomes relative
to the ‘zero-impact’ scenario described in the case.
4. What happens if sales volumes are lower or higher than expected as
outlined at the
end of the case?
5. What hedge decision would you advocate?

Are you Looking for Quality and Plagiarism-Free Assignment Help? Get Trusted Help From the Most Skilled Writers at Homeworkmaven.com. Hire Your Personal Writer Today and Keep Up Your GPA this Semester.
275 words per page

You essay will be 275 words per page. Tell your writer how many words you need, or the pages.

12 pt Times New Roman

Unless otherwise stated, we use 12pt Arial/Times New Roman as the font for your paper.

Double line spacing

Your essay will have double spaced text. View our sample essays.

Any citation style

APA, MLA, Chicago/Turabian, Harvard, our writers are experts at formatting.

We Accept
Image 3