HedgingCurrencyRisksatAIFS

HarvardBusinessSchoolCase205026
CourseSoftware205703
Thiscoursesoftwarewaspreparedsolelyasthebasisforclassdiscussion.Casesarenotintendedtoserveas
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Exhibit9TemplateforCurrencyRateandSalesVolumeImpactonCompanyBottomLine
Finalvolume:_______________
%Cover

Contracts

Options

100%
100%
100%
100%
100%

0%
25%
50%
75%
100%

100%
75%
50%
25%
0%

75%
75%
75%
75%
75%

0%
25%
50%
75%
100%

100%
75%
50%
25%
0%

50%
50%
50%
50%
50%

0%
25%
50%
75%
100%

100%
75%
50%
25%
0%

25%
25%
25%
25%
25%

0%
25%
50%
75%
100%

100%
75%
50%
25%
0%

0%
0%
0%
0%
0%

0%
25%
50%
75%
100%

100%
75%
50%
25%
0%

USDExchangeRate(EUR/USD)
1.01
1.22
1.48

Source:AdaptedbycasewritersfromAIFS.Numbersandlevelshavebeendisguisedforconfidentiality.