Aspen

Aspen

Aspen Technology, Inc.
Case objectives: Measuring risk exposures
1What are Aspen Technology’s main exchange rate exposures? How does Aspen’s business strategy give rise to these exposures as well as to the firm’s financing needs?
Jawaban:
Berdasarkan exhibit 5, current sales sebagian besar dari Yen (US$3282/US$26685) =12.3%. Expense sebesar US$4400/$US52351 = 7%.
Juga UK pounds yang sebesar: current sales: US$2722/US$26685 = 10.2%. Expensenya sebesar: US$4940/52531 = 9.4%.
Jadi Aspen Technology mengfokuskan terhadap Yen and UK Pounds currency.
Aspen menggunakan metode Cross Currency dan interest rate swap. Dalam hal ini melakukan hedging kontrak dengan GE dan Sanwa. Di mana di dalamnya tergantung dari interest rate, forward   exhange rate dan kontraktual spread.
Cross Currency:
Aspen mendominasikan receavable dalam US dollar dan non dollar dengan GE dan Sanwa (Exhibit 5b).
GE dan Sanwa mendiskoun melalui liase payment dengan menggunakan currency rate US dollar dengan berdasarkan patokan US treausry rate (Exhibit 5b).
Aspen menerima US dollar dari GE dan Sanwa.
Interest Rate Swap:

Catatan: LIBOR digantikan oleh US Treasury Echange Rate

2Quantify Aspen’s currency exposures on its accounting earnings and its cash flows for 1995. What currencies is it long and short?
Jawaban:
Accounting earnings:
Berdasarkan Exhibit 1a P&L , ada penerimaan dari FOREX 1995 (gain US$34,000).
Cash flows:
Berdasarkan Exhibit 1c, effect of exchnage rate gain sebesar US$90,000.
Berdasarkan Exhibit 4, maka Aspen akan melakukan long position (buy) terhadap UK pounds dan melakukan short position (sell currency) untuk mata uang Yen dan DM.
A long position is made when the trader buys a currency. The long position is made by the investor if he expects the currency to later rise in value. If that happens, he will be able to sell the currency he bought for a higher price than what he paid for it. In this case, the trader can benefit from a market that is on the...