Case study questions

timer Asked: Mar 2nd, 2016

Question description

The case study questions are the following:

1. What are Aspen Technology’s main exchange rate exposures? How does Aspen Tech’s
business strategy give rise to these exposures as well as to the firm’s financing need?
2. Calculate Aspen’s exposures by currency for the past year. What currencies is it long and
short? (based on Exhibit 5)
3. What goal would you recommend for the firm’s currency risk management program? Why?
Based on your goal, what type of exposure should Aspen be measuring?
4. Should the firm maintain its policy of completely eliminating all exposure on booked sales? If
not, what policy would you advocate and why?
5. How, if at all, should Aspen’s recent transition from a private to a publicly-traded firm affect
its approach to risk management?

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