Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2020-08-18
Revision date: 18-Sep-2020
Length: 4 pages
Data source: Generalised experience
Abstract
The chief financial officer of Pixonix Inc is trying to decide if she should hedge, given the current strength of the Canadian dollar. Her company licenses proprietary software through a US company that will cost $7.5 million in three months time. The case provides the students with the opportunity to understand the impact of exchange rate fluctuations on her firm''s cash flows and some of the instruments available to manage risk, including puts and calls and forward contracts.
Location:
Size:
Small
Other setting(s):
2007
About
Abstract
The chief financial officer of Pixonix Inc is trying to decide if she should hedge, given the current strength of the Canadian dollar. Her company licenses proprietary software through a US company that will cost $7.5 million in three months time. The case provides the students with the opportunity to understand the impact of exchange rate fluctuations on her firm''s cash flows and some of the instruments available to manage risk, including puts and calls and forward contracts.
Settings
Location:
Size:
Small
Other setting(s):
2007