Case Solution

Vanguard Security Corporation Foreign Exchange Hedging Dilemma Case Solution

The case Vanguard Security Corporation, a Portuguese company, explores exchange rate and trade financing choices for any transaction from a U.S.-based importer along with a European exporter. It concentrates on transaction and economic exposure identification and risk management. Additionally, it explores corporate finance and bid risk management issues. The case involves quantitative and qualitative solution techniques because it requires using four fundamental exchange rate predicting techniques and choosing between six exchange rate hedging items to get the best solutions according to an exam from the needs and risk appetite from the VSC corporate treasurer.