mini case study questions at the end. 2or 3 paragraphs per question

******* **** **************************** **** ******** ****** ** Banbury ** the rise in cotton ****** ****** ****** impact the ****** profitability of *** ******* ****** ****** cannot ****** ** ******* and ****** *** ******* of the ********* The ******* ********* cannot ****** *** ***** ***** ***** *** *********** **** ***** *** Bangladesh ** *** production ***** ** ** *** ****** ****** **** seem ** ****** more ** *** **** ** **** appears ** ****** *** ****** prices *** ** ****** ********* The government programs ***** are **** ********* **** ** ****** the **** of ****** ********** Furthermore ****** exports *** ** the **** *********** an increased cost for the raw *********** ****** value of the ***** is * ******* ****** ** Banbury since *** ******* market ******** * ******** rupee ****** prices **** ** a ****** margin of 75% **** *** ***** only ****** ** 20% ** the end the profitability ****** ***** ** ****** prices ****** be ***** **** *** ************* ****** ***** ** *** ***** ***** *********** the ***** ***** is ****** ** **** **** *** ******* ******** ** ***** experiences ********* *** causes ******* ******* ** *** *************** ******* ****** ***** *** ****** **** **** *** available ****** futures Currently *** ***** **** **** ** * steady **** ******* would *** ** *********** ** the increase in price *** ********* However *** ******* has *********** * ********* **** ** *** ***** ** ****** ** the ****** ***** Unless the ********** ******** change ** *** ******* ** ****** *** ********** *** ******* ** ******* ** ***** ******* ****** ***** ********* The hedging **** provide **** **** ** ********* ** *** ******* and help it ***** *** ******** effectively ***** ** ***** *********** ******** * ****** price reduction hedging ** ************** ******* should ******* the ******* based on its immediate ***** *** ******* have ****** **** March ** ******* ** *** **** *** ***** ** * ********* ** ***** with the ****** being *********** ** October The company should ***** *** cotton ****** from ******* ***** 2011 ** **** **** with *** 11309 ******* ****** Demand *** July **** ** ******* **** ****** be ****** **** *** 10206 ******* option Then ****** from ******* **** should be ****** **** *** 9503 *************** ******* has the option of ***** *** Lira *** ****** and *** Euro ** *** currency for *** ******* ***** ** ** ******** **** and the settlement *** **** on ******* **** then *** ****** **** rate ** *** **** relevant Using *** ****** the ****** **** ** *** *********** ***** *** Euro ****** ** ***** ************* *** ********** ******* *** **** ******* rate *** *** **** **** is 01508(3087-307192)Banbury should use *** **** as *** ******** for *** invoice *** *** ********** **** an ******** in value ******* the **** in *** ****** ******* **** *** ******* lira **** ******* ** ***** and ** ** *** weakest ******** ** the ***** and ***** ******** *** ***** ***** *** increase ** ****** ***** ** **** ** 028 ********* *** ***** *** *** ******* The ******* gains *** from *** **** ***** gains ** ***** ******* *** ***** promising *** ******* ****** ******* from *** ******* ***************** ****** ****** ******** ********* points ****** ****** **** ******** *** annual ******** **** 14% ** *** ******** ** ***** ****** *** interest **** ** ******** **** *** ****** ******** **** be * 239808 **************** The ******** amount ** converted 10990400 ****** (4583*239808) *** ******* **** **** **** ******** ****** ********** *** ********** The ******* **** *** 11276400 ****** ******* * ***** ****** ************* HedgeUsing *** *** ****** **** * ****** ***** ** **** *** company will **** ************** *********** 250000*0005-1000*4583) ***** * strike **** of **** the ******* **** **** 11275420 rupees (4525*25000+ 0035*250000-1000*4583) *** ******* will ********* use * ***** ****** ***** ***** ******** * ****** rupee ***** than *** *** ********* currency ********** **** ******* ** ****** * changing ********* ** the price ** *** ***** ********** *** ****** *** cotton ****** **** to fluctuate ****** *** year *********** *** short-term profitability *** *** ******* *** company ****** try *** use ******* to ensure **** ** **** *** have *********** ****** ***** ******** Hedging for ****** **** ******* *** company ******* ***** **** ******* ***** since ** cannot influence international ********* company should **** **** ****** for *** ***** ******** ***** market hedges *** ******** ****** ****** ** **** when ********* * ********* approach **** be quoting the ***** ** ****** ** **** way *** ******* **** **** *** the currency ***** ** the ********* *** change ** ***** value will ** ***** ** *** customer ** ** ******* *** company from foreign ******** *******

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