PLEKHANOV RUSSIAN ECONOMIC UNIVERSITY INTERNATIONAL FINANCIAL MANAGEMENT Case Study REPORT Hedging Currency Risks At AIFS Professor: Yulia Y.Finogenova Performed by: Budeanu Diana Gabaydullin Ilnar Kulikova Ekaterina
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Summary AIFS is an American based company that offers travel abroad and exchange study services to both college and high school students. While AIFS’s revenues are denominated in American Dollars (USD)‚ most of their costs are in foreign currencies as Euros (EUR) and British Pounds (GBP). Consequently‚ foreign exchange hedging has a crucial importance for the company because it provides protection against different types of risk that derive from its activity. In order to reduce risk‚ the company
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AFM 322 Hedging Currency Risk at AIFS 1. Case Synopsis Christopher Archer-Lock and Becky Tabaczynski both work for American Institute for Foreign Study (“AIFS”). Archer-Lock is the controller of AIFS and Tabaczynski is the CFO of AIFS’s high school travel division ACIS. AIFS a student exchange organization that organizes educational and cultural exchange programs throughout the world. Founded in the U.S. in 1964‚ AIFS has annual revenues of close to $200 million and sent more than 50‚000 students
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Case Study Essay – Hedging Currency Risks at AIFS The American Institute for Foreign Study (AIFS) is offering cultural exchange programs for American students and High School pupils throughout the world. Their customers have the possibility to go abroad while the AIFS organises the whole trip for them. Due to their business model the revenues of the company are denominated only in USD‚ since the offer is for American students who pay in USD. Meanwhile the costs of the company is mostly denominated
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27‚ 2013 Hedging Currency Risks at AIF The American Institute of Foreign Studies (AIFS) is a company that organizes student exchange programs worldwide with two main divisions. The College Division arranges academic years and semesters or summer schools. The High School Division organizes 1-4 week educational travels for students and teachers. More than 50‚000 students participate each year in exchange programs of AIFS‚ which leads to annual revenues of around $ 200 million. AIFS receives most
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Q1. What gives rise to the currency exposure at AIFS? * Currency exposure is the extent to which the future cash flows of an enterprise‚ arising from domestic and foreign currency denominated transactions involving assets and liabilities‚ and generating revenues and expenses‚ are susceptible to variations in foreign currency exchange rates. * AIFS organizes educational and cultural exchange programs throughout the world. AIFS receives most of its currencies in American dollars (USD but
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Homework: Foreign Currency Transactions and Hedging - Hedging Currency Risk at AIFS Case 1. What gives rise to the currency exposure at AIFS. Currency exposure or currency risk is the type of risk that an individual or a company faces due to the fluctuation in price of one currency against another. For AIFS –a student exchange organization that offers education and travel programs all over the world- the fact that they do business domestically and internationally gives rise to several factors that
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Hedging Currency Risks at AIFS The American Institute for Foreign Study (AIFS) is a foreign exchange program organization that provides 50‚000 students the opportunity to study abroad. AIFS serve American students traveling abroad to Europe‚ China‚ Mexico‚ and other locations. Therefore‚ AIFS receive cash inflows in dollars while they pay outflows in mostly Euros and British Pounds. The organization had $200 million in annual revenues. AIFS provides two main divisions: the College division primarily
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Prof. Lin Guo FIN 417 HBS Case: Hedging Currency Risks at AIFS Due date: April 12‚ 2012 Instructions: This case should be done individually. You should prepare a written analysis‚ and hand in two copies of your analysis on April 12 in class. Only hard copies of the case analysis are accepted. I will submit one of the copies to the Dean’s office for assessment purpose. Each student should also bring his/her own copy of the write-up to class‚ as well as the case itself‚ so that we can refer
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AIFS Case Finance in a Global Environment Rochester Institute of Technology Group 4 Mengjie Ban Liu Gu Danielle Sherwood Bill Speight Mohamed Waheed Summary The American Institute for Foreign Study‚ also known as AIFS‚ is a student exchange organization that specializes in academic and cultural exchange programs for both college and high school students. The AIFS was founded by Sir Cyril Taylor in 1964‚ in the United States‚ and is split into two divisions: the Study Abroad College
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