1. What were the key components of Laker Airways' operating exposure?
2. What options did it have to hedge its operating exposure?
3. Could Laker have hedged its ‘‘natural'' dollar liability exposure?
4. Should Laker have financed its purchase of DC 10 aircraft by borrowing sterling from a British bank rather than using the dollar-denominated financing supplied by McDonnell Douglas and the Eximbank? Consider the fact that Eximbank, a U.S. government agency, subsidized this financing in order to promote U.S. exports.