Aifs currency hedging solution 3618 words | 15 pages aifs case finance in a global environment rochester institute of technology group 4 mengjie ban liu gu danielle sherwood bill speight mohamed waheed summary the american institute for foreign study, also known as aifs, is a student. This case is about hedging currency risks at aifs get your hedging currency risks at aifs case solution at thecasesolutions. In very simple terms, currency hedging is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates currency hedging is used by. Hedging currency risks at aifs case solution,hedging currency risks at aifs case analysis, hedging currency risks at aifs case study solution, hedging currency risks at aifs problem statement: the problem identified in this case is, to determine that which option is best in different scenarios wit. Range of entities ranging from banks to corporates and insurance companies, will require many aifs to fully collateralise their fx hedges as part of its aim to lower the risks associated with derivatives having reviewed the impact of the new regulatory change, investec has developed an efficient solution that will allow funds. In consequence of the fluctuating exchange rate of usd against foreign currencies and the fact that aifs fixes the price for their services before the costs can be estimated, the firm faces an inevitable currency exposure in order to limit or eliminate this risk, aifs has to hedge their currency exposure at the moment the.
View case study report from fin 4250 at international university of japan derivatives markets hedging currency risks at aifs case study report final exam submitted to: professor haruyoshi. Different coverage of costs with hedging was also introduced in the analysis the three main policies march 27, 2013 hedging currency risks at aif the american institute of foreign studies (aifs) is a company that organizes student exchange programs worldwide with two main divisions the college.
The american institute for foreign studies (aifs) organizes study abroad programs and cultural exchanges for american students the firm's revenues are mainly in us dollars, but most of its costs are in eurodollars and british pounds the company's controllers review the hedging activities of aifs aifs has a hedging. Analysis of issues what percentage of the expected costs should they cover what proportions should aifs use forward contracts and options depends on final sales volume market value of usd currency exposure transaction exposure the transaction exposure also known as a short-term economic exposure is a. Hedging currency risks at aifs, we shall now address the many stipulations regarding issues such as currency exposure and hedging decisions of the.
Hedging currency risks at aifs case study help, case study solution & analysis & hedging currency risks at aifs case solution introduction american institute for foreign study (aifs) organizes the educational and cultural exchange prog. Subject areas: currency, foreign exchange, foreign exchange rates, hedging, travel case settings: london education industry travel industry $200 million.
Derivatives to illustrate currency exposure risk, section 4 recommends hedging currency risks at aifs, in which the manager of a us-european study abroad program is reviewing its hedging program and use of forward contracts and currency options adding sales volume risk (forecast vs actual) to the analysis. Share classes may be established which may be differentiated on the basis of distribution policies, charging structure and currency hedging in the case of retail investor aifs and qualifying investor aifs, (aifs), share classes may also be established on the basis of interest rate hedging, different levels of.