This is a very nice paper and reads very well. Thank you for another job well done!
GM’s Treasury Group has asked you to hedge the negative effect of a possible dollar appreciation stemming from its Opel-Vauxhall subsidiary. GM owns the Opel-Vauxhall brand in the UK and Europe. Opel-Vauxhall sends its profits back to GM in the U.S.; but since it earned its profit in foreign currencies, the European division must execute a currency exchange to send dollars to the States. Treasury has asked that you hedge this foreign exchange exposure, thinking that if the dollar appreciates between now and the end of the year, some of the company’s profits earned overseas will be wiped out. Using futures or options contracts of no longer than one-year maturity, limit the negative effect of dollar appreciation to less than 25% of the profits Opel-Vauxhall earns.
Base your profit forecast on readily available forecasts of the division’s profitability `and your estimates of the exchange rate risk based on forward contracts for the dollar. Use current prices for forward and options contracts, which is to say you will need to pick a specific day on which to execute your trades.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more