Operational Exposure Occurs at the Term Paper

Open, View, and/or
Download this Document

Total Length: 1542 words ( 5 double-spaced pages)

Total Sources: 0

Page 1 of 5

In this way they would have hedged their currency risk completely. This option would have been preferable because Laker Airways does not have the financial resources to wait for the currency market to stabilize like a British Bank, which means that they would have inevitably lost money, whereas the bank can wait until the currency market changes or reinvest in other currency that has higher exchange values. Since Laker Airways is wholly dependent upon incoming revenue it seems that even given that the loan from Axim would have been heavily subsidized the best option would have been to go with the British Bank. However, if the loan was subsidized to a substantial level, Laker Airway may have deemed the currency risk as worth it. Since U.S.

Stuck Writing Your "Operational Exposure Occurs at The" Term Paper?

View All Our Example Operational Exposure Occurs at the Term Paper

Have A Custom Example Essay Written

And Pound exchange currency had always been relatively stable up until its dramatic depreciation, Laker Airways could have assumed that the trend would continue and thus the margins provided through a subsidized loan would have been much more profitable. This looks like the ultimate gamble that Laker did take, and since the currency did depreciate at a substantial level they evidently lost their bet on the sterling. On the whole it would seem unwise to play the currency market when they do not have either a specialist on currency, or a very strong financial basis to weather the storm on any major fluctuations to the current market......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Operational Exposure Occurs At The" (2007, April 05) Retrieved June 8, 2025, from
https://www.aceyourpaper.com/essays/operational-exposure-occurs-38829

Latest MLA Format (8th edition)

Copy Reference
"Operational Exposure Occurs At The" 05 April 2007. Web.8 June. 2025. <
https://www.aceyourpaper.com/essays/operational-exposure-occurs-38829>

Latest Chicago Format (16th edition)

Copy Reference
"Operational Exposure Occurs At The", 05 April 2007, Accessed.8 June. 2025,
https://www.aceyourpaper.com/essays/operational-exposure-occurs-38829
   

Open, View, and/or
Download this Document
order custom essay example