Finance-AW141 Online Services




Finish in Excel Sheets

As you know, Yoda Corporation, a division of Blackthorn imports goods from New Zealand, and plans to purchase NZ$ 10,000,000 of goods one quarter from now.  You have already run several regressions for them in the regression case. Now the Treasurer of Blackthorn wishes you to develop forecasts to use to decide on appropriate hedging strategies for the purchase using revised data.

Quarter 90 day forward beginning of Quarter Spot rate Beginning of Quarter Spot rate end of quarter Last Quarters inflation Differential % Prior % change in exchange rate
1 0.325 0.3177 0.3233 -0.05% 1.76%
2 0.3272 0.3233 0.3267 -0.46% 1.05%
3 0.3285 0.3267 0.3746 0.66% 14.66%
4 0.3778 0.3746 0.4063 0.94% 8.46%
5 0.4093 0.4063 0.4315 0.58% 6.20%
6 0.4344 0.4315 0.4548 0.23% 5.40%
7 0.4572 0.4548 0.4949 0.02% 8.82%
8 0.4966 0.4949 0.5153 1.26% 4.12%
9 0.5169 0.5153 0.554 0.86% 7.51%
10 0.5574 0.554 0.5465 0.54% -1.35%
11 0.552 0.5465 0.544 1.00% -0.46%
12 0.5488 0.544 0.6309 1.09% 15.97%
13 0.6365 0.6309 0.6027 0.78% -4.47%
14 0.6081 0.6027 0.5491 0.23% -8.89%
15 0.5538 0.5491 0.532 0.71% -3.11%
16 0.5365 0.532 0.5617 1.18% 5.58%
17 0.5667 0.5617 0.5283 0.70% -5.95%
18 0.5334 0.5283 0.5122 -0.31% -3.05%
19 0.5149 0.5122 0.5352 0.62% 4.49%
20 0.5372 0.5352 0.589 0.87% 10.05%
21 0.5878 0.589 0.5862 0.28% 1.24%
22 0.5882 0.5862   0.39%  

You can read more about our case study assignment help services here.


How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


You are tasked with using regression to assess three different hypothesizes to forecast the value of the NZ$ at the end of the quarter (FSR the future spot rate), and then using those to determine an optimal hedging strategy.


  • FSR is determined by the Forward rate at the beginning of the quarter


  • FSR is determined by the spot rate at the beginning of the quarter.



  1. Estimating the relationship between the inflation differential during each quarter and the percentage change in the NZ$. Then using an estimate of the current inflation differential, predict the expected percentage change (using equation below) and then use that % change to modify the current spot to determine FSR.

Expected percentage change in NZ$=a+b*(Last Q inflation diff)


  • The treasurer plans to develop a probability distribution for FSR. First it will assign a 40% probability to the forecast based on inflation differential, 40% based on the forecast that was most successful in meeting the requirements for a “good regression” from the forward and spot regressions, and 20% on the least accurate of those two regressions.



  • Then complete the following table
Probability FSR $/nz$ payments if no hedge amount need if Forward hedge Real Cost Hedge  Regression used


  • What is the expected cost of not hedging versus the forward hedge?


  • Other than the forward hedge, Blackthorn can use a money market hedge or a call option to hedge. From the data below, determine the probability distribution of the dollars needed for a call option if used (include the premium paid) by filling out the following table.


Probability FSR $/nz$ will you expect to exercise given exercise price $.60 what it costs per unit  $needed including premium (rate + Premium)


Data: 90-day U.S. borrowing rate =2.5%

90 day U.S. investing rate= 2.3%

90 day New Zealand borrowing rate =2.4%

90 day New Zealand investing rate= 2.1%

Call option on NZ$ has premium of .01 per unit

Call option on NZ$ has an exercise price of $.60

  • Compare the forward hedge to the money market hedge. Which is superior? (compute both)
  • Compare the superior hedge in 9, to the option hedge. Which is superior?


10.Compare the hedge you believe is best to the unhedged strategy? Should you hedge?


Product code: Finance-AW141
Looking for best Finance-AW141 online ,please click here

User Rating
5 based on 1 votes