Different strategic actions related to currency hedging in 1995 lead the management to pursue the chance of a foreign currency hedging program, which was ordered. The dilemma before management was whether such a hedging program should be undertaken and if it is taken, then what form it should take.
Learning Objective: This case summarizes the procedure followed in coping with its foreign currency exposure by a large Canadian pension fund.
To comprehend the decision making process for a currency hedging program.
To understand the notion of hedging that is universal and hedge ratios.
To comprehend the dangers related to currency hedging programs.
To comprehend the problems in performance evaluation of individual fund managers.
Publication Date: 02/19/1997
This is just an excerpt. This case is about Finance