Q1. Why does Porsche face more operating exposure than Mercedes or BMW?
Q2. Is Porsche really fully hedged through July 31, 2007? Suppose that gains on all its outstanding options were included in reported earnings for its fiscal year ended July 31, 2004.
Q3. Why would analysts be nervous if up to 75% of Porsche’s pretax profit for fiscal year 2004 came from gains on foreign currency options?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.