Diva Shoes, Inc - The Case Centre

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Case

Reference no. UVA-F-1222

Subject category: Finance, Accounting and Control

Authors: Susan Chaplinsky (Darden School of Business, University of Virginia)

Published by: Darden Business Publishing

Originally published in: 1999

Version: July 23 2012

Revision date: 29-Nov-2012

Length: 15 pages

Data source: Field research

Topics: Exchange rate risk; Forward contracts

Share a link: https://casecent.re/p/575

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Abstract

This case examines the exchange-rate risk of a US based manufacturer of women's luxury shoes that has recently introduced its product in Japan. Students are asked to evaluate the extent of the firm's exposure to currency risk and whether hedging via forward contract or currency option is advisable.

Industry:

Manufacturing