Hedging

Case Solution for 2012 Fuel Hedging at JetBlue Airways

Complete Case details are given below :

Case Name : 2012 Fuel Hedging at JetBlue Airways

Authors : Pedro Matos

Source : Darden School of Business

Case ID : UV6682

Discipline : Finance

Case Length : 24 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

At the start of 2012, Helena Morales, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Airlines cross-hedged their jet fuel price risk using derivatives contracts on other oil products such as WTI and Brent crude oil. Consequently, an airline was exposed to basis risk. In 2011, dislocations in the oil market led to a Brent-WTI premium wherein jet fuel started to move with Brent instead of WTI, as it traditionally did. Faced with hedging losses, several U.S. airlines started to change their hedging strategies, moving away from WTI. But others worried that the Brent-WTI premium might be a temporary phenomenon. For 2012, would JetBlue continue using WTI for its hedges, or would it switch to an alternative such as Brent?

Click Here to place your order

Place your order at casesolutionshub (AT)gmail(dot)com if you want to solve above case.

Cordially,

Case Solutions Hub

Case Solution for Alumni Action Foundation: Currency Hedging Strategy

Complete Case details are given below :

Case Name : Alumni Action Foundation: Currency Hedging Strategy

Authors : Walid Busaba, Zeigham Khokher, Ken Mark

Source : Ivey Publishing

Case ID : 910N30

Discipline : Finance

Case Length : 14 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

The executive director of an independent charitable foundation is thinking about whether to hedge his foundation’s U.S. dollar exposure given the large swings in the Canadian dollar-U.S. dollar exchange rate. For the past four years, the weakening U.S. dollar has contributed to underperformance in the foundation’s portfolio relative to its peers.

Click Here to place your order

Place your order at casesolutionshub (AT)gmail(dot)com if you want to solve above case.

Cordially,

Case Solutions Hub

Case Solution for Leveraged Buyout (LBO) of BCE.: Hedging Security Risk

Complete Case details are given below :

Case Name : Leveraged Buyout (LBO) of BCE.: Hedging Security Risk

Authors : Colette Southam, Ahsen Amir-Ali, Samir Meghji

Source : Ivey Publishing

Case ID : 908N23

Discipline : Finance

Case Length : 07 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

In 2007, an analyst in the derivatives group of investment bank Grenfeld & Co. was asked to devise a hedging strategy for Providence Equity Partners (Providence) in Bell Canada Enterprises (BCE Inc.). Providence was based in the United States and any strategy would involve significant foreign exchange rate risk due to the conversion of returns into U.S. dollars. The analyst needed to consider several long-term hedging strategies that Grenfeld & Co. could recommend to Providence. Her vice-president had asked that she create a hedging strategy by initially assuming a 25 per cent IRR for the investment and its performance, based on two outcomes at the end of the investment (investment horizon = five years): a zero per cent IRR and a 25 per cent IRR.

Click Here to place your order

Place your order at casesolutionshub (AT)gmail(dot)com if you want to solve above case.

Cordially,

Case Solutions Hub

Case Solution for Voyages Soleil: The Hedging Decision

Complete Case details are given below :

Case Name : Voyages Soleil: The Hedging Decision

Authors : Stephen Sapp, Jonathan Michel

Source : Ivey Publishing

Case ID : 905N24

Discipline : Finance

Case Length : 08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

The president of a small Canadian tour operator of packaged vacations faces foreign exchange risk resulting from a future transaction in which the firm is committing to pay in U.S. dollars where the company’s revenues are in Canadian dollars. The thin profit margins require the company to consider different hedging alternatives. The case provides significant information that will allow students to discuss international parity conditions and various hedging strategies within a relatively simple context.

Click Here to place your order

Place your order at casesolutionshub (AT)gmail(dot)com if you want to solve above case.

Cordially,

Case Solutions Hub

Case Solution for Barrick Gold: Eliminating the Gold Hedging Strategy

Complete Case details are given below :

Case Name : Barrick Gold: Eliminating the Gold Hedging Strategy

Authors : Murray Bryant, Ken Mark

Source : Ivey Publishing

Case ID : W11036

Discipline : Accounting

Case Length : 16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

Barrick Gold, the largest gold producer in the world, has taken steps to eliminate its longstanding gold hedging program. In its early years, Barrick’s hedging program was a key factor allowing the firm to grow amidst falling gold prices. But Barricks management team faced questions about its hedging program when gold prices started to rise in the 2000s. The case allows students to review Barrick’s hedging program and consider the impact of its decision not to hedge going forward.

Click Here to place your order

Place your order at casesolutionshub (AT)gmail(dot)com if you want to solve above case.

Cordially,

Case Solutions Hub