Exhibit 1 CUSTOMER BREAKDOWN GEOGRAPHICALLY Australia 2x Other 58 Caraca 333 United States of America 51% United Kingdom 48 Source: Corporate documents Exhibit 2 HISTORICAL BANK OF CANADA USD TO CAD NOMINAL EXCHANGE RATE, 2006 TO 2011, 12:00PM 1.35 13 1.25 1.2 1.15 11 1.05 1 0.95 0.9 12/30/2005 12/30/2006 12/30/2007 12/30/2008 12/30/2009 12/30/2010 Source: Bank of Canada, http:/www.bankofcanada.ca/enraseslexchformhom.accessed April 3, 2011 Page 6 9B11N010 Exhibit 6 2011 USD TO CND TRANSACTIONS Date 01/14/2011 01/28/2011 02/10/2011 02/24/2011 03/01/2011 Total USD 135,000.00 115,000.00 270,000.00 200,000.00 178,000.00 898,000.00 CND 133.825.50 114,436,50 267,948.00 196,040.00 172,695 60 884.945 60 Exchange Rate 0.9913 0.9951 0.9924 0.9802 0.9702 Source: Corporate documents Exhibit 7 SELECTED FINANCIAL MARKET DATA A. Forward Contract Quotations Spot: 0.9731 Period 1 Month 0.97374 3 Month 0.97510 6 Month 0.97765 9 Month 0.98052 1 Year 0.98385 Source: Bloomberg Financial LP Ask B. Options Quotations Spot: 0.9731 MMDD/YY 04/01/11 06/02/11 09/05/11 12/02/11 03/02/12 Call Option Sinke 0.97374 0.97510 0.97765 0.98052 0.98385 Ask MM/YY 0.9334% 04/01/11 1.7150% 06/02/11 2.6023% 09/05/11 3.2584% 12/02/11 3.8363% 03/02/12 Put Option Strike 0.97374 0.97510 0.97765 0.98052 0.98385 Ask 0.9334% 1.7150% 2.6023% 3.2584% 3.8363% Source: Shoomberg Financial LP . 4. Feel free to make assumptions, justify your assumptions. 5. You report should include the following analysis: Frame the issue. Why is Brenzel Concerned by the current exchange rate fluctuation? Which vehicles does Acpana have at its disposal for hedging? Assume Acpana will need to transfer $200,000 US dollars to Canadian dollars on a regular basis, calculate the impact of these different hedging strategies against a naked position at: a. 1 Cdn$1 US$; b. ICdn$0.90 USS: c. 1 Cdns=1.10 USS. Should Schenkel recommend Acpana hedge its position in Canadian dollars? Why or why not? If you think he should recommend a hedge, which vehicle should he recommend? Does the Economist Business Unit's forecast that the Canadian dollar will finish the year at parity to the US dollar affect your decision to hedge? Summarize your conclusions. . . Exhibit 1 CUSTOMER BREAKDOWN GEOGRAPHICALLY Australia 2x Other 58 Caraca 333 United States of America 51% United Kingdom 48 Source: Corporate documents Exhibit 2 HISTORICAL BANK OF CANADA USD TO CAD NOMINAL EXCHANGE RATE, 2006 TO 2011, 12:00PM 1.35 13 1.25 1.2 1.15 11 1.05 1 0.95 0.9 12/30/2005 12/30/2006 12/30/2007 12/30/2008 12/30/2009 12/30/2010 Source: Bank of Canada, http:/www.bankofcanada.ca/enraseslexchformhom.accessed April 3, 2011 Page 6 9B11N010 Exhibit 6 2011 USD TO CND TRANSACTIONS Date 01/14/2011 01/28/2011 02/10/2011 02/24/2011 03/01/2011 Total USD 135,000.00 115,000.00 270,000.00 200,000.00 178,000.00 898,000.00 CND 133.825.50 114,436,50 267,948.00 196,040.00 172,695 60 884.945 60 Exchange Rate 0.9913 0.9951 0.9924 0.9802 0.9702 Source: Corporate documents Exhibit 7 SELECTED FINANCIAL MARKET DATA A. Forward Contract Quotations Spot: 0.9731 Period 1 Month 0.97374 3 Month 0.97510 6 Month 0.97765 9 Month 0.98052 1 Year 0.98385 Source: Bloomberg Financial LP Ask B. Options Quotations Spot: 0.9731 MMDD/YY 04/01/11 06/02/11 09/05/11 12/02/11 03/02/12 Call Option Sinke 0.97374 0.97510 0.97765 0.98052 0.98385 Ask MM/YY 0.9334% 04/01/11 1.7150% 06/02/11 2.6023% 09/05/11 3.2584% 12/02/11 3.8363% 03/02/12 Put Option Strike 0.97374 0.97510 0.97765 0.98052 0.98385 Ask 0.9334% 1.7150% 2.6023% 3.2584% 3.8363% Source: Shoomberg Financial LP . 4. Feel free to make assumptions, justify your assumptions. 5. You report should include the following analysis: Frame the issue. Why is Brenzel Concerned by the current exchange rate fluctuation? Which vehicles does Acpana have at its disposal for hedging? Assume Acpana will need to transfer $200,000 US dollars to Canadian dollars on a regular basis, calculate the impact of these different hedging strategies against a naked position at: a. 1 Cdn$1 US$; b. ICdn$0.90 USS: c. 1 Cdns=1.10 USS. Should Schenkel recommend Acpana hedge its position in Canadian dollars? Why or why not? If you think he should recommend a hedge, which vehicle should he recommend? Does the Economist Business Unit's forecast that the Canadian dollar will finish the year at parity to the US dollar affect your decision to hedge? Summarize your conclusions
