This term paper, submitted by students of UIU for the FIN-4322 course, delves into international financial management through the analysis of four case studies. The first case explores the use of currency derivatives, specifically call options, for hedging yen payables, evaluating the trade-offs between different exercise prices and the profitability of hedging versus not hedging. The second case study focuses on hedging against currency fluctuations over a two-month period. The third case examines arbitrage opportunities, identifying the potential for different types of arbitrage and explaining their short-lived nature. The final case analyzes exposure to foreign exchange rate fluctuations, identifying transaction, economic, and translation exposures and suggesting strategies for risk mitigation. The report includes a letter of transmittal and an executive summary, providing a comprehensive overview of the analysis and conclusions drawn from each case study.
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