Ivey Publishing
Acpana Business Systems Inc.: Effect of Currency Exposure on Revenue
Product Number:
9B11N010
Publication Date:
07/20/2011
Length:
6 pages (3 pages of text)
Product Type:
Case (Field)
Source:
Ivey
The vice president of operations for Acpana Business Systems Inc., a Canadian software development and backup-as-a-service provider located in Toronto, Canada, is concerned that the recent appreciation of the Canadian dollar is significantly affecting Acpana’s revenue and undermining the company’s organic growth. The case focuses on understanding and quantifying the risks associated with exchange rate fluctuation and its impact on a firm’s revenues and costs. The case introduces instruments available to hedge risk, including forward contracts and put and call options.
Learning Objective:
This case is intended for an introductory finance class or as an early case in a class on derivatives or international finance. No prior knowledge of options and forward contracts is needed to use the case.
Issues:
Disciplines:
Finance
Industries:
Administrative, Support, Waste Management and Remediation Services
Setting:
Canada, Small, 2011
Intended Audience:
Undergraduate
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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