Financial Analysis and Hedging Strategies for Globetel

This document analyzes the financial performance of Globetel, a multinational company operating in Australia and Japan. It examines the impact of exchange rate fluctuations on the company's net cash flow and explores the use of hedging strategies to mitigate currency risk. The analysis includes a discussion of the purchasing power parity theory and its implications for exchange rate movements. The document also presents a detailed comparison of different hedging strategies, including forward hedging, money market hedging, and put option hedging, to determine the most appropriate approach for Globetel.