Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 27 August 2001
Length: 24 pages
Data source: Field research
Topics:
Futures; Options; Commodity markets; Commodities; Risk management; Hedging; Investments; Finance
Abstract
After initiating a hedging strategy, Apache Corp is interested in revisiting its decision to determine if hedging is value-adding. This case investigates how the company initially decided to hedge against commodity price risk and how it implemented its hedging practice. It also examines when financial theory argues hedging is value-adding.
Industries:
Other setting(s):
2001
About
Abstract
After initiating a hedging strategy, Apache Corp is interested in revisiting its decision to determine if hedging is value-adding. This case investigates how the company initially decided to hedge against commodity price risk and how it implemented its hedging practice. It also examines when financial theory argues hedging is value-adding.
Settings
Industries:
Other setting(s):
2001