The president of a small-scale Canadian tour operator of packaged vacations faces foreign exchange risk caused by a future trade where the firm is committing to pay in U.S. dollars where the business's earnings are in Canadian dollars.
The thin profit margins need the firm to consider hedging options that are different. The case provides essential information which will facilitate pupils to discuss international parity states and various hedging strategies within a comparatively straightforward circumstance.
Voyages Soleil The Hedging Decision Case Study Solution
PUBLICATION DATE: October 04, 2009 PRODUCT #: 905N24-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING