Mapec oil was given to alternative lump today or four payments over three years. Payments in Japanese yen. The student must decide what is best in U.S. dollars. Information provided on the forward rates and the prices of options. The case is a good introduction to present value concepts and issues related to foreign exchange. Information on forward contracts and options are listed in the appendix.
This Darden study. "Hide
by Robert M. Conroy Source: Darden School of Business 9 pages. Publication Date: 01 Oct 1991. Prod. #: UV0458-PDF-ENG