Hedging
What does Hedging mean in relation to exchange rates and banking?
Borrowing money at an already set exchange rate
What does Spot Rate mean?
Exchange rate for the immediate exchange of 2 currencies
What is the Aero-Code for International Procurements?
AC-6135
What exchange rate do you use when creating your PA and negotiating with supplier?
The proposed exchange rate
Which team member is welcoming a baby this year?
Zach Davies
When a Post-Hedge MOU must be completed, who hedged?
Supplier
When is exchange rate determined if using Spot Rate?
At Price Agreement
What are the 3 options when negotiating with an international supplier related to exchange rate?
Supplier Hedges, LM Hedges, Spot Rate
What is Exchange Rate also referred to as?
FX or FOREX
What is the currency of the UK?
GBP (Pound)
What was the reasoning Caitlyn explained on why she contracted in CAD with Avcorp?
Avcorp had bad credit with the bank so was unable to hedge. This also turned out to be in LM favor due to being below target.
Why would a supplier want to avoid spot rate?
It is risky due to unknown future market when they would get paid
What currency will the PO be in if LM Hedges?
The Foreign Currency
What was discussed as the most common exchange rate BAE proposed at?
1.4 or 1.45
What is Russian money called?
Ruble
What is the name of Bret's supplier in Poland for F-16
PZL
What did Abbi compare spot rate to?
Using the interest rate on the day a house closes rather than locking it while in the search process.
Where do you file hedge data in the POF?
In PO Folder with NoN aka Negotiation Memorandum Tab
What do fluctuations in currency exchange lead to?
Foreign Currency Exposure
What is a major reason for why we would pay a supplier prior to negotiations?
UCA
Per AC-6135, what is one of two documents needed to submit a Hedge Request to Business Capture Excellence?
Payment Profile (Invoicing schedule) and/or Form 13413
What is a disadvantage of using spot rate?
Rate may not be always be the most favorable (other answers that make sense are allowable)
What 2 documents are required for buyer to submit an LM hedge request?
13413 and payment profile
What is the most desirable currency (USD or International supplier's currency) for F-35 program?
Whichever creates the greatest value to the customer.
Where does Zach's wife work?
ALCON