Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2019, are available in Connect. This material is also available under the Finance link at the company’s website (www.airfranceklm.com.)

Required:
1. In Note 36.1: Risk management and Note 36.2: Derivative instruments, AF discusses its various risk exposures and strategies to reduce its exposure to such risks. Based on the detailed disclosures in Note 36.2, what are the three largest risk exposures (based on the fair value of its derivative instruments)? For each risk exposure, list one derivative instrument it uses to hedge that risk.
2. Per Note 36.2, what is the fair value of AF’s derivative instruments on the balance sheet? (Hint: This information is also provided in Notes 26 and 35.)