GB525's Unit 4 currency exposure memo, finished: euro receivables, zloty payroll and a translated subsidiary, each sized and matched to a single response. Searches like "gb 525 unit 4 assignment example", "gb525 unit 4 sample" and "gb525 unit 4 example" land here.
What a finished GB525 Unit 4 currency exposure memo looks like
A two-page memo to the chief financial officer with a header block, a four-sentence summary and one table. The summary lists the three exposures and the single action recommended. The table gives each exposure a row, with columns for type, currency, amount, horizon and response. Transaction exposure is a composite 6.2 million euros of receivables on 60-day terms, turning over continuously. Operating exposure is the Polish plant's annual zloty costs of roughly 38 million, set against revenue priced in euros. Translation exposure is the subsidiary's net assets, restated into dollars each quarter for consolidated reporting. Below the table, one paragraph per exposure explains what moves it and over what period. A forward contract program for the receivables alone ends the memo, with the reason the other two stay unhedged.
How a GB525 Unit 4 example is structured
The memo is organized by exposure type because each behaves on a different clock. Transaction exposure comes first as the most immediate: every euro invoice is a known amount due on a known date, which makes it the one exposure a forward contract fits cleanly. Operating exposure follows, framed as a competitiveness question rather than an accounting one. If the zloty strengthens against the euro, the plant's costs rise against the prices German customers pay, and no rolling hedge solves a shift lasting years. The memo points instead to a partial natural offset through zloty-priced sales to Polish customers. Translation exposure comes last, with a sentence on ASC 830 noting that its gains and losses run through other comprehensive income rather than earnings. The recommendation hedges receivables at a stated ratio and describes the rest as monitored, not ignored.
Three rows, five columns
Type, currency, amount, horizon, response. The table fits the whole argument into a third of a page, and a finance reader can check each figure against the ledger it came from before reading any prose.
Receivables on a sixty-day clock
A composite 6.2 million euros outstanding at any time, rolling as invoices are paid. Forward contracts cover [70] percent of forecast receivables, a ratio justified by how reliably the German customers pay on terms.
The plant as a competitive exposure
Zloty costs against euro prices over several years. The memo sets out what a sustained zloty rise would do to margin per sensor and suggests pricing part of the plant's local sales in zloty as an offset, while admitting it covers only a fraction.
Translation, stated and left alone
Subsidiary net assets move with the zloty at each quarter-end. Hedging them would spend cash to smooth an accounting figure that does not change what the plant earns, so the memo recommends disclosure instead.
What would change the recommendation
Two triggers are named: a shift in German payment behavior, which would alter the hedge ratio, and a decision to expand the plant, which would raise operating exposure enough to justify a longer program.
Where marks go in GB525 Unit 4
Blurred exposure types cost a currency memo more than anything else, usually when a paper recommends hedging everything with forwards, including an operating exposure lasting years that no forward can fit. Graders in GB525 look for the memo to say what is exposed, in which currency, and for how long; a paper forecasting the exchange rate instead has answered a different question and tends to lose the analysis row. Missing amounts are the next common deduction, since a hedge ratio means nothing without the base it applies to. Translation exposure treated as a cash loss signals a conceptual gap. Memo format also counts in many sections: a summary a reader can act on without the body, a table, and no more than two pages. Unsourced claims about a currency regime draw smaller deductions.
Get a GB525 Unit 4 example written to your instructions
Your Unit 4 scenario supplies the currencies and figures; add the prompt and its rubric. The memo returns in 24-48h, organized around your firm's exposures with a single recommended response for each, and a first sample is free. Any amount the case leaves unstated stays in brackets so the numbers remain yours.
GB525 Unit 4 questions, answered
Should the memo include an exchange rate forecast?
Usually not, and many GB525 prompts discourage it. Exposure analysis asks what a move would do, not which way the rate will go. A sensitivity line, such as the effect of a ten percent move on the receivables, answers that without pretending to predict. If your prompt does ask for a forecast, cite the source and treat it as one scenario among several.
What is the difference between transaction and operating exposure?
Transaction exposure attaches to specific amounts already contracted, like an invoice due in sixty days, so it has a known size and date. Operating exposure is the longer effect of a currency shift on costs, prices and competitiveness, with no fixed amount. Forwards and options fit the first; structural choices, such as where you source or sell, answer the second.
Do I need to name specific hedging instruments?
Yes, wherever the memo recommends hedging. Name the instrument, the amount or ratio covered and the horizon, and add a sentence on why it fits better than the alternative. A forward locks a rate; an option buys protection while keeping upside, at a premium. A memo that simply says to hedge the exposure rarely earns the recommendation criterion.