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As of July 2004, American Institute for Foreign Study (AIFS) hedge all its costs. Make a case (without any calculations) to CFO, Becky Tabaczynski, that

As of July 2004, American Institute for Foreign Study (AIFS) hedge all its costs. Make a case (without any calculations) to CFO, Becky Tabaczynski, that

a) hedging all its costs may not be an optimal strategy for the corporation.

b) an option hedge makes a better choice than forward contracts for hedging. Would Becky Tabaczynski agree with your thought process?

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