Healthy Life Company Background:

Healthy Life Company Founded in 1997, is a family-owned enterprise that imports and exports medical supplies. The company exports its medical supplies to the following regions, 50% to Europe 30% to North America, and 20% Middle East.

In 2019, the company's sales reached USD 13.2 million, compared with the previous year's sales in 2018 were flat and operating income was declining. However, by the end of 2019, the sales started to increase gradually, due to the global COVID-19 pandemic and the high demand for N95 masks.

Imagine yourself as the CFO of the company, as per your position you are proposing to the board of directors your plan as follows: hedging the company position into currency derivatives, to protect the company from the high volatility in the currency market due to the Russian and Ukrainian war. The table below shows the payment due during the current year (2022):

Date	Currency	Amount
	USD	5,750,000	Cash available in bank
15/4/2023	EUR	2,230,500	Inflow
28/4/2023	GBP	4,250,000	Outflow
2/5/2023	JPY	3,580,000	Inflow
12/5/2023	EUR	5,000,000	Outflow

Executive Summary (A separate page containing a summary of what you did and your results). (LO 1,2,3)

1. Hedging strategy, (Describe the strategy that you are planning to use in managing your FX position to gain profit. How would you choose a currency pair? How would decide on your position? What will be your risks? How are you going to manage the risks? (LO 1,3)
2. Outlook and Research, (Please describe and evaluate the currency movement (GBP, EUR, KWD, JPY, and USD). How is the value of each currency determined and why do they move against each other? (LO 1,2)
3. Evaluation Clarify the calculation method you have used in every transaction. Explain how you can apply and use currency futures, forward, options, or any tool to hedge against exchange rate risk.
4. Conclusions and Recommendations (LO 1,2,3)
5. List of References
6. appendices