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Hedging Currency Risks at AIFS Harvard Business School Case 205-026 Course Software 205-703 This course software

was prepared solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright 2004 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system, used in a spreadsheet or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording or otherwisewithout the permission of Harvard Business School.

Exhibit 9 Template for Currency Rate and Sales Volume Impact on Company Bottom Line
Final volume: _______________ 30500 % Cover Contracts 100% 100% 100% 100% 100% 75% 75% 75% 75% 75% 50% 50% 50% 50% 50% 25% 25% 25% 25% 25% 0% 0% 0% 0% 0% 25000 Options Contract 1.22 Option Uncovered

Source: Adapted by case writers from AIFS. Numbers and levels have been disguised for confidentiality.

Uncoverd USD Exchange Rate (EUR/USD) 1.01 1.22 1.48

Options USD Exchange Rate (EUR/USD) 1.01 1.22 1.48

Total cost USD Exchange Rate (EUR/USD) 1.01

Total cost USD Exchange Rate (EUR/USD) 1.22 1.48

Contract Option 30500 30500

1525

32025