I have case study question, and other essay questions
Part 1. Aspen
Technologies Case Questions:
Identify Aspen Technologies
main exchange rate exposures. Explain
how Aspen Technologies’ business strategy gives rise to these exposures as well
as to the firm’s financing needs.
Calculate Aspen’s exposure
for the past year. Identify whether the
firm is long or short for each currency exposure.
Recommend a currency risk
management program for Aspen Technology.
Part II: Short Essay Questions:
Suppose the current trade
imbalances disappear in the next decade.
Explain what will happen to capital flows if that occurs. Identify and explain the factors that will
contribute to the end of the trade imbalances and corresponding change in
Identify and explain the
indicators of a country’s economic and political risks.
Explain why a multinational
company may have a lower cost of capital than a purely domestic company.
Some forecasters believe
that the foreign exchange market is efficient and forward exchange rates are
unbiased predictors of future spot exchange rates. Explain what is meant by
unbiased predictor in terms of how the forward rate performs in estimating the
future spot rate.