part 1

Based on this weeks reading and weekly lecture:

• How does Walt Disney account for foreign currency fluctuations?
• How much did the Walt Disney Company gain or lose in their most recent fiscal year because of foreign currency fluctuations?
• Explain the effect that a drop in value of the US dollar would have on the financial statements of Walt Disney Corporation. Cite specific examples that relate to Walt Disney’s financial statements.

Part 2

• Explain forward and future contracts, option contracts, and swaps. Provide an example of each.
• Provide an example of the use of an option to hedge a purchase of inventory.