Word limit: Maximum 3,000 words
These are the 6 methods, choose up to 3 max:
Future contract
Options contract
Leading and lagging
Natural hedging
Forward contract
select three public listed companies that operate on the same type of business or industry.
(1) Using the most recent three years’ relevant information from the chosen companies, list and discuss three different foreign currency hedging methods that employed by the chosen companies to manage their foreign currency transaction exposures. Specifically, your report should provide inputs as follows:
(a) List and describe hedging method (A) employed (15 marks)
(b) List and describe hedging method (B) employed (15 marks)
(c) List and describe hedging method (C) employed (15 marks)
(2) Using the relevant literature reviews from the past ten years, critically evaluate each hedging method identified in (1) and use appropriate examples from these chosen companies to support your arguments.
(a) Critical evaluation of hedging method (A) (15 marks)
(b) Critical evaluation of hedging method (B) (15 marks)
(c) Critical evaluation of tool and method (C) (15 marks)
(3) Conclusion (10 marks)