Suggested Format for Case Analyses:

1. Executive Summary: brief 1 paragraph stating key problem(s) and your main recommendation(s)/decision(s).

2. Problem Identification: 1-2 page write-up of the key problem(s) you have identified within the case. This should not be a re-hash of the case itself. The Case Study questions should help you address the issues in this section.

3. Action Plan: 1-2 page write-up of your proposed solution to the problem(s) with detailed steps as to how to proceed with implementing your proposal.

4. Financial Analysis: 1-2 page write-up of the financial analysis that supports the recommendation(s) you have presented in the Executive Summary and Action Plan. Use an electronic spreadsheet to do the calculations and print out these figures as an attachment to your case analysis.

Case Study Questions:

Tiffany & Co.—1993: 1. Should Tiffany actively manage its yen-dollar exchange rate risk? Why or why not? 2. If Tiffany were to manage its exchange rate risk activity, then what should be the objectives of such a program (e.g., what specific purpose or theoretical rationale can justify a decision to hedge the yen-dollar risk)? 3. Assuming Tiffany wanted to hedge this risk, try to identify what exposures should be managed via such a hedging program (e.g., hedge sales, net income, cash flow, etc.). Also, try to quantify how much of these exposures should be covered and for how long. 4. Identify, in terms of cost, benefits, and risk, the relative advantage / disadvantage of the following three hedging strategies: a) do nothing, b) hedge with forward or futures contracts, and c) hedge with option contracts.

Aspen Technology, Inc.: Currency Hedging Review (Mid-term Case and Group Presentation): 1. What are Aspen Technology’s main exchange rate exposures? How does the firm’s business strategy give rise