Faculty of Business Environment and Society

Please submit an electronic copy of your assignment via the module web) by 16.00 on the above deadline. (See instructions on module web)

Please note:
1.     All work submitted after the submission deadline without an approved valid reason (see below) will be given a mark of zero. (This is not the same as a non-submission, as a late submission counts as an attempt and a mark of zero may allow you to resit the coursework.).
2.    Short deferrals (extensions) of up to three calendar weeks can only be given for genuine “force majeure” and medical reasons, not for bad planning of your time. Please note that theft, loss, or failure to keep a back-up file, are not valid reasons. The short deferral must be applied for on or before the submission date. You can apply for a short deferral by submitting an Examination/ Coursework Deferral Application Form. Application Forms along with the supporting evidence should go to the relevant Student Support Office (WM404). For a longer delay in submission a student may apply for a (long) deferral.
Students MUST keep an electronic file of their assignment.

The electronic version of your assignment may be used to enable checks to be made using anti-plagiarism software and approved plagiarism checking websites.

Word Length              Maximum/ Minimum/Range    1500 to 2500  words.

Any penalties for not complying with word limits will be in accordance with University and Faculty policy

Learning Outcomes Assessed

The following learning outcomes are being assessed..

2.  Compare the financial products available on international markets
3. Devise and apply appropriate strategies using derivatives to manage currency risk.
4. Critically evaluate the use of derivative instruments to manage currency risk.

Assessment Criteria

Please see feedback pro-forma.

For information on how marks are awarded for particular elements of this assignment see please see the feedback pro-forma.

Return of Marked Work
You can expect to have marked work returned to you by 2 weeks after the submission date

COURSEWORK QUESTION:

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk.

1) Drawing on literature, critically evaluate all relevant hedging techniques used by large firms. Illustrate your arguments with appropriate examples / cases / empirical studies review.
(35 marks)

2) Drawing on literature, critically evaluate all relevant hedging techniques used by small firms. Illustrate your arguments with appropriate examples / cases / empirical studies review.
(35 marks)

3) Compare the similarities and differences of the use of these hedging techniques by large and small firms.
(30 marks)