...Tarun Kumar Soni Learning outcomes After completion of the case study, the students will be able to understand the different risks associated with a business, focusing on price risk and the importance of price risk management in business; understand and evaluate the products available for hedging...

... and eroded investor confidence”. Eskom’s incompetent management lays the ground for reasonable doubt as to whether the force majeure notice was indeed irresistible. The case suggests several methods available in financial markets to hedge risk – but to what extent are these relevant and appropriate? The main...

... the production chain. Understand how futures and options contracts in commodities can be used to hedge price risk on long and short positions in the underlying products. Understand how option contracts add value by hedging risk in those contexts where the counterparty has optionality. Discuss the implications...

...Vishwanath S.R.; Jaskiran Arora; Durga Prasad; Kulbir Singh Synopsis The case provides an introduction to how currency mismatches create exposures, why and how companies hedge (or do not hedge) those exposures, alternate valuation models and the use of foreign currency convertibles in funding...

... the company's exposure; understand the nature of the risk; understand how the hedge works in practice; and separate hedging and speculation. This case was prepared by Professor Russell Walker. 21 01 2021 © The Kellogg School of Management at Northwestern University 2018 Cases...

.... can be contacted at: srvishy@gmail.com © Emerald Publishing Limited 2017 Emerald Publishing Limited Licensed re-use rights only Corporate finance Valuation International finance Hedging Sulzon Energy Ltd The case highlights the ambitious growth strategy of Suzlon...

... to discuss potential hedges. Sufficient detailed information is provided for the students to construct and analyze both a forward and money market hedge. A teaching note and instructor and student Excel spreadsheets are available. A class session can be easily orchestrated through a series of questions...

...Kenneth M. Eades Delta Beverage is facing severe cost control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers have risen substantially during the past year. The student must decide whether the CFO should hedge aluminum to avoid the risk of violating...

...Robert F. Bruner In January 1996, an investment manager of a hedge fund is considering purchasing an equity interest in a start-up biotechnology firm, Rocky Mountain Advanced Genome (RMAG). The asking price is $46 million for a 90% equity interest. Although managers of the firm are optimistic about...

... acquisitions bargaining/bidding forecasting hedging joint ventures option pricing diversity international Pharmaceuticals/Biotechnology/Health Care Suggestions for complementary cases on exotic securites: “Bank of Tokyo” (UVA-F-1018); “Boston Chicken” (UVA-F-1153); “General Motors: 1991...

...Pedro Matos In early 2012, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Because airlines cross-hedged their jet fuel price risk using derivatives contracts on other oil products such as WTI and Brent crude oil, they were exposed to basis...

...Pedro Matos In early January 2008, a senior VP with LAAMCO, a fund of hedge funds known for alternative investments, was conducting due diligence on an equity market-neutral hedge fund. The hedge fund used an option strategy known as a collar (also known as a bull spread or split-strike conversion...

...Aisyah Abdul Rahman; Raudha Md Ramli Subject area The case is suitable for use in the topics related to the functions and roles of hedging and the Islamic derivatives/hedging instruments. Study level/applicability The case is designed for undergraduate students, taking courses in Islamic...

...Jayanth R Varma The case is about an Indian company hedging soya oil price risk in the US futures market instead of in the Indian market to take advantage of better liquidity and wider choice of hedging instruments there. A stable long run relationship (cointegration) between the two markets...