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Baker Adhesives

Publication date: 20 January 2017

Abstract

A small adhesives company faces exchange rate risks as it makes its first foray into international sales. The receipt of payment from an unhedged foreign-currency-denominated past sale illustrates potential currency risks while a potential follow-on order provides a context 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.

Keywords

Citation

Lipson, M.L. (2017), "Baker Adhesives", . https://doi.org/10.1108/case.darden.2016.000033

Publisher

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University of Virginia Darden School Foundation

Copyright © 2007 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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