nl/locate/econbase Exchange rate exposure‚ hedging‚ and the use of foreign currency derivatives George Allayannis a‚* ‚ Eli Ofek b a b Darden Graduate School of Business Administration‚ University of Virginia‚ PO Box 6550‚ Charlottesville‚ VA 22906‚ USA Stern School of Business‚ New York University‚ 44 West 4th St. #908‚ New York‚ NY 10012‚ USA Abstract We examine whether firms use foreign currency derivatives for hedging or for speculative purposes. Using a sample of
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Obermeyer‚ Ltd. Aspen‚ Colorado Wally Obermeyer deftly balanced his office keys and a large printout of forecasting data as he wheeled his mountain bike through the front entrance of Sport Obermeyer’s headquarters in Aspen‚ Colorado. It was a crisp November morning in 1992; Wally paused for just a moment to savor the fresh air and beauty of the surrounding mountains before closing the door behind him. Wally had arrived at work early to start one of the most critical tasks Sport Obermeyer‚ a fashion
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lot of volatility in other markets around the world owing to increased inflation and the oil shock. Export Houses struggled to cope with the uncertainty in profits‚ cash flows and future costs. It was then that financial derivative – foreign currency‚ interest rate‚ and commodity derivatives emerged as means of managing risks facing corporations. In India‚ exchange rates were deregulated and were allowed to be determined by markets in 1993. The economic liberalization of the early nineties facilitated
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CASE FAIRCHILD WATER TECHNOLOGIES‚ INC. 1. The difference between a developing and a developed country are typically based on economics. A developing country usually has a low level of affluent citizens‚ and higher levels of unemployment. Developing countries also have lower education rates‚ and often times undeveloped‚ rural type villages. Developed countries usually have technological advantages‚ better roads‚ stable governments‚ higher education rates‚ and good health care. 2. By performing
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foreign exchange hedging policy? GM’s foreign exchange hedging policy has three primary objectives. Its first objective is to reduce cash flow and earnings volatility. Specifically‚ management hedges the company’s transaction exposures and consciously ignores any balance sheet exposures (translation exposures). Second‚ GM aims to minimize the management time and costs dedicated to global FX management. The company employs a passive FX management strategy since an internal study determined that
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INTRODUCTION This assignment in which Snap Inc. has been chosen as a case study will shed some light briefly on the history of Snap Inc‚ the nature of business its involved in‚ the market base the firm targets‚ the original mission and vision of Snap Inc as the founders stated at the start of the business and the future objectives of the organization for the next five years. Consequently‚ the above information about the firm will then be used to evaluate and make comments on whether the original
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current situation in the case study‚ and applies using analysis tools. This will further relate to Apple’s strategic factors and success and how it uses the STP (Segmentation‚ Targeting‚ and Positioning) tool to explain its market position. The report will also give recommendations with brief details of how Apple can improve its business strategies and operations to achieve higher market share from its competitors. Introduction The Research Problem This report serves to study and critically analyse
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Case Review of Vandelay Industries‚ Inc. Table of Contents I. Problem Statement 1 II. Background Information and Introduction of the Case 2 III. Summary of Findings 2 IV. Analysis of Alternatives 3 V. Detailed Recommendations 5 Case Review of Vandelay Industries‚ Inc. Problem Statement Vandelay Industries‚ a global‚ multi-billion dollar corporation that manufactured industrial rubber and latex process equipment‚ was being ran on out-dated‚ fragmented‚ manufacturing and order fulfillment
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Derivatives and Hedging Assignment: Hedging Strategy comprised of GM stock and 3.5% is comprised of Ford stock. Assume that GM and Ford are the only automobile industry holdings in the portfolio. Assume that you are bearish on the automobile industry over the next six months and neutral to bullish on all other industries. Utilizing derivatives create a hedging strategy to protect the portfolio over the next six months from your bearish automobile industry outlook. Risk management is defined
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BUS 427- CASE STUDY Instructor: Eda Orhun‚ Ph.D. Name: ID # : Posted: 12.04.2015 Due : 03.05.2015 (BLACKBOARD SUBMISSION before midnight) ORANGE INC CASE STUDY Orange Inc.‚ a U.S. manufacturer of roller blades‚ has chosen Thailand as its primary export target for “Speedos‚” Orange’s primary product. Moreover‚ Orange’s primary customer in Thailand‚ Entertainment Products‚ has committed itself to purchase 180‚000 Speedos annually for the next 3 years at a fixed price denominated in baht
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