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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Hedging strategies against currency risk and inflation in a long-term service contract
Organization Unit
Authors
  • Brian Kreuzer
Supervisors
  • Benjamin Wilding
  • Markus Leippold
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 61
Date 2023
Abstract Text This thesis analyzes the various hedging strategies against currency and inflation risk. The research on the theoretical concepts show that hedging can reduce the volatility of the cash flows and the earnings if applied correctly. Based on the theory, two flowcharts were developed to help decide which project level hedging strategies are most appropriate. To find suitable hedging strategies in practice, a long-term service contract at Stadler Rail AG was analyzed. The finding is that in practice as many risks as possible should already be covered in the contract, while in theory more internal and external strategies are analyzed at the corporate level.
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