- 6 Marks
SCS – May 2020 – L3 – Q6 – International Financial Management
Explain a suitable foreign currency risk hedging method for Customer Focused Ltd in relation to the Look and Like Ltd contract.
Question
Customer Focused Ltd has received a proposal from a potential supplier, Look and Like
Ltd, to provide fresh produce (Exhibit 2a) and is considering whether to accept. Kpakpo
Armah has written a note (Exhibit 2b) about Look and Like Ltd.
Required:
Using the information available, including information you feel relevant from your answer
to Section A:
Describe an appropriate foreign currency risk management hedging method for the risk the company might face in the future as described in Exhibit 2b.
Find Related Questions by Tags, levels, etc.
- Tags: Currency Fluctuations, Foreign Exchange Risk, Hedging, Risk Mitigation
- Level: Level 3
- Topic: International financial management
- Series: MAY 2020
