Question
Read the case The Walt Disney Company's Yen Financing and answer the following questions. 1. Assume that Disney has made the decision to hedge its
Read the case "The Walt Disney Company's Yen Financing" and answer the following questions.
1. Assume that Disney has made the decision to hedge its yen royalty stream from Tokyo Disneyland. What is the full range of hedging alternatives available to Disneys treasurer? What are the advantages and disadvantages of each in this case?
2. In light of the various other techniques for hedging currency exposures, why does a market for currency swaps exist? Who benefits and who loses in such an arrangement?
3. Evaluate Goldmans proposal for an ECU bond issue accompanied by an ECU/yen swap.
4. Did it make sense for Disney to hedge yen royalty receipts in the first place?
3. Evaluate Goldmans proposal for an ECU bond issue accompanied by an ECU/yen swap.
4. Did it make sense for Disney to hedge yen royalty receipts in the first place?
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Computational Intelligence In Economics And Finance Volume II
Authors: Paul P. Wang, Tzu-Wen Kuo
2007th Edition
3540728201, 978-3540728207
