President of a small Canadian tour operator packaged vacations faces foreign exchange risk as a result of future transactions in which the firm commits to pay in U.S. dollars, where the company's revenues are in Canadian dollars. Thin profit require the company to consider options hedging. The case provides important information that will allow students to discuss international parity conditions and various hedging strategies in relatively simple terms. "Hide
by Steven Sapp, Jonathan Michel Source: Richard Ivey School of Business Foundation 8 pages. Publication Date: 04 October 2009. Prod. #: 905N24-PDF-ENG
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