Acquisition analysis of Possum Ltd

Running head: INTERNATIONAL FINANCE
International Finance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1INTERNATIONAL FINANCE
Table of Contents
Acquisition analysis of Possum Ltd:...............................................................................................2

2INTERNATIONAL FINANCE
1. Introduction:
The assessment highlights the hedging measures than needs to be taken by the mangers of
British Airways for minimising the risk from currency fluctuations. The case study directly
highlights that the British Airways has an intention of buying the Boeing 787 Airplanes from the
US manufacturer to support its operations. The deal is commended in February 2019, where the
payments will be made at the time of delivery, which is one year from the date of signing the
deal. The fluctuation in the currency market will directly have negative impact on the purchase
price of British Airways, which needs to be hedged with adequate financial instruments. Hence,
the managers of the organisation need to acquire adequate hedging strategy for minimising the
negative impact from volatile capital market. Moreover, the assessment also evaluates currency
exposure overview of the current situation. In addition, the analysis of hedging measure and
speculations is mainly evaluated in the assessment, which can eventually help in detecting the
risk levels faced by the organisation. The adequate explanation about the operational hedge is
also depicted in the assessment, which could have affected the deal of British Airways. The
analysis on the currency fluctuations is also detected, which can increase the cost buying the
Airplane for British Airways.