Spanish language
Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2003-01-20
Length: 11 pages
Data source: Published sources
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Abstract
This is the Spanish version of ''9A90B001''. Storm Technologies Ltd has a significant net US cashflow position which exposes the company to foreign exchange risk. As vice-president of finance, Todd Harrison is interested in determining the impact on cashflow and reported net income of a strengthening Canadian dollar. Several alternative hedging strategies are suggested including: (1) forward contracts; (2) call options; (3) put options; and (4) a combination of put and call options. Because the company also has a significant amount of US debt, there is an automatic hedge as the Canadian dollar increases, since the US liability necessarily decreases.
Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-03-15
Length: 8 pages
Data source: Published sources
About
Abstract
This is the Spanish version of ''9A90B001''. Storm Technologies Ltd has a significant net US cashflow position which exposes the company to foreign exchange risk. As vice-president of finance, Todd Harrison is interested in determining the impact on cashflow and reported net income of a strengthening Canadian dollar. Several alternative hedging strategies are suggested including: (1) forward contracts; (2) call options; (3) put options; and (4) a combination of put and call options. Because the company also has a significant amount of US debt, there is an automatic hedge as the Canadian dollar increases, since the US liability necessarily decreases.
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Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-03-15
Length: 8 pages
Data source: Published sources