Choosing to use forward contracts as his hedging tool instead of
In reference to the Lfthansa Case Herr Ruhnau was accused of making the following four errors:1). Purchasing the Boeing aricraft at the wrong time. The U.S. dollar was at an all time high at the time of the purchase in January 1985.2). Choosing to hedge half the exposure when he expected the dollar to fall. If he had gone through with his instincts or expectations, […]
