The Chief Financial Officer of Pixonix Inc. is trying to decide whether they should protect, given the current strength of the Canadian dollar. Your company’s proprietary software licensed by a U.S. company, which costs $ 7.5 million in three months. The case provides students with the opportunity to the effects of exchange rate fluctuations on its cash flows, the Company and some of the tools available to understand manage risk, including put and call options and forward contracts.

The Chief Financial Officer of Pixonix Inc. is trying to decide whether they should protect, given the current strength of the Canadian dollar. Your company’s proprietary software licensed by a U.S. company, which costs $ 7.5 million in three months. The case provides students with the opportunity to the effects of exchange rate fluctuations on its cash flows, the Company and some of the tools available to understand manage risk, including put and call options and forward contracts.
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from
Colette Southam,
Karim Moolani
Source: Ivey Publishing
4 pages.
Release Date: 5th June 2009. Prod #: 908N13-PDF-ENG
Pixonix Inc. – addressing currency risk HBR case solution

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