107-051-1 MITSURU MISAWA OSG CORPORATION: HEDGING TRANSACTION EXPOSURE On Monday‚ April 24th 2006‚ the US dollar fell to a new three-month low against the yen of ¥114.30/$ in Tokyo’s foreign exchange market‚ the lowest rate since January 16th 2006. This was a reflection of trading in New York three days earlier‚ on Friday‚ where the dollar had fallen more than 1.75% against the yen. The depreciation of the dollar against the yen was a direct result of a meeting of the G7 in Washington D.C. on April
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Currency derivatives Introduction Currency derivatives come in to existences as a hedging tool. As against unfavourable appreciation and depreciation of a single currency. Exporter‚ importer and financial investor have developed a vast range of currency derivative instruments are also used by speculators willing to arrange future currency selling or buying contracts while hoping hoping to buy or sell the currency at favourable anticipated exchange rates in the future. This act of speculator
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position beyond the standard policy or should GM Argentina rely on other approaches to cope with the expected devaluation? Appraisal of GM’s Passive Hedging Strategy GM’s passive hedging strategy is reflective of its policy to focus on its underlying business rather than speculate on the movements of foreign currency. There are two main types of currency exposure. The first being economic risk. This deals with the impact of devaluation on the present value of the future earnings of the firm. It is
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Kenya’s Pension Fund Industry amounts to approximately KShs 200 billion reference‚ or the equivalent of 23% of Gross Domestic Product (GDP). These funds are currently operated by statutory contributions under National Social Security Fund (“NSSF”)‚ sponsor-led schemes and individual Retirement Benefit Schemes reference. | These pension funds are established by employers to facilitate and organize the investment of employees’ retirement funds contributed by both the employers and the employees
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the 24th premier of Ontario it was evident that many drastic changes were made. One of the main changes that McGuinty is well known for is his decision to introduce new taxes. Some of these unexpected taxes and costs that we must now face are eco taxes‚ health tax‚ the HST‚ and hydro bills. However‚ having a Tim Hudak government would help families when it comes to paying all of these‚ what seems to be‚ never-ending bills. In 2007‚ McGuinty even promised the people of Ontario that he would not hike
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INTRODUCTION OF PERSONAL ACCOUNTS‚ THE PRINCIPAL LEGISLATIVE CHANGE WAS THE REFORM OF STATE PENSIONS The reforms being introduced by the Pensions Act 2007 and the Pensions Bill recently presented to parliament represent the biggest transformation in UK pension provision since 1988‚ at the very least‚ and possibly since 1978. The new Act addresses both the increasing cost and the declining value of state pensions. It also prepares the ground for the introduction of personal accounts by the current Bill
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Introduction Currency Futures Defined Currency Futures are standardised foreign exchange derivative contracts on a recognised stock exchange to buy or sell a standard quantity of one currency against another on a specified future date at a specified price. It allows clients to take a view on the movement of the exchange rate as well as hedge against currency risk. Clients can use Currency Futures as a trading‚ investing and hedging tool.The Reserve Bank of India (RBI) has permitted the recognized
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Hedging Tiffany and Co.’s Foreign Currency Exposure in Japan Prepared for the Board of Directors of Tiffany & Company D.A.M.M. Business Consultants June 15‚ 1993 Table of Contents Executive summary ………………………………… Risk of foreign exchange exposure in Japan ……… Overview of the Japanese Economy ………………. Industry analysis ……………………………………. Internal & external environmental analysis………. Financial analysis …………………………………... Hedging foreign exchange exposure ………………. Recommendation …………………………………… Appendices
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Executive Summary Lufthansa CEO Herr Ruhnau was under-fired for his hedging decision on the purchase of 20 Boeing aircrafts which cost Lufthansa an additional DM 225M back in Jan. 1985. Some criticisms are valid to a certain degree given the strict covenants and guidelines Ruhnau had to work against however others are base-less such as forcing Ruhnau to step down as CEO. This case analysis will discuss the hedging alternatives Ruhnau considered‚ the decision that was made‚ an analysis of the criticisms
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PENSION FUNDS A pension plan fund is established for the eventual payment of retirement benefits. A plan sponsor is the entity that establishes the pension plan. A plan sponsor can be: • A private business entity on behalf of its employees‚ called a corporate plan or private plan. • A federal‚ state‚ and local government on behalf of its employees‚ called a public plan. • A union on behalf of its called a Taft-Hartley plan. • An individual‚ called an individually sponsored plan. Two
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