Case Delta Beverage Group‚ Inc. History The Delta Beverage Group is a bottling and canning company from the United States. Delta had some very strong brand names‚ like Pepsi and Mountain Dew‚ included in their franchises. Around 1988‚ a price war occurred and Delta suffered from compressed margins. About a year later situation became critical and a new management team from was hired. The new management stopped the fall in prices‚ the decline in market share and increased margins by changing
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A MARKETPLACE BOOK McMillan on Options Second Edition Lawrence G. McMillan John Wiley & Sons‚ Inc. McMillan on Options Founded in 1807‚ John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America‚ Europe‚ Australia‚ and Asia‚ Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Trading series features
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Germans decide to not buy the microchips. That is why we recommend Madesco to buy a put option of DMs. Madesco‚ in case the deal go through‚ will have the right (but not the obligation) to exercise its options and protect its cash flows in terms of Dollar in case DM appreciates. In case the deal never goes through‚ the company knows from the begging that it have sacrificed only the premium cost for buying the options. Also‚ that strategy fits better to Madesco because the time horizon of the hedge is
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Case Background In July 1993‚ Tiffany & Company reorganized its Japanese distribution channel by repurchasing its inventory from its Japanese distributor Mitsukoshi Limited. As a result of this action‚ Tiffany would assume the responsibility of establishing yen retail prices‚ holding inventory in Japan for sale‚ and controlling local Japanese management. Tiffany would be able to have control over retail price in Japan where historically had higher price. Under the previous arrangement‚ Tiffany contracted
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Merton Electronics Case Study 1) Merton Electronics is subject to transaction exposure. Transaction exposure is the gains or losses realized from the settlement of specific transactions that are denominated in a foreign currency. There are two main types of transaction exposure: 1) Purchasing or selling on credit goods denominated in a foreign currency 2) Borrowing or lending funds when repayments is going to be made in foreign currency. In respects to Merton’s Yen payments they are subject
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Global Trading FINC 6015 Arbitrage Source: Frino Segara (2008) Chapter 3 – Course Text Joakim Westerholm Hui Zheng MARKET COMMENTARY MACRO: Any economic indicators that show the US economy is improving are now perceived as negative news for stock markets as this means the FED can wind back on flooding the market with liquidity created by buying back government bonds. POLITICAL: Syria Australian Reserve bank appears at ease with the weaker dollar and will continue to ease rates:
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terms‚ once financing charges are met. OPTION PRICING: The buyer of a call option gets the right to buy the underlying the underlying asset at affixed price‚ where as the buyer of a put option obtains the right to sell the underlying asset at a fixed price. Alternatives to the binomial model In the binomial option pricing model‚ the underlying asset and risk free lending or borrowing are combined to create a portfolio that had the same cash flows as the option being valued; we called this portfolio
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Volkswagen and Porsche - Corporate Finance Case study: Mergers & Acquisitions of listed companies by Joachim Häcker What is the macro view of this case study? Small fish tries to eat big fish (financial figures are end of 2005 and rounded): VW: Market cap: €16 bn Book value: €24 bn Cash and cash equivalent: €8 bn (+€4 bn marketable securities) Porsche: Market cap: €11 bn Book value: €3.4 bn Cash and cash equivalent: €3.6 bn VW Porsche case study – by Joachim Häcker Seite 1
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Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Appendix B Introduction to Derivatives .............................................................................................. An Introduction to Forwards and Options
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Eun & Resnick 4e CHAPTER 8 Management of Transaction Exposure Three Types of Exposure Forward Market Hedge Money Market Hedge Options Market Hedge Hedging Foreign Currency Payables Forward Contracts Money Market Instruments Currency Options Contracts Cross-Hedging Minor Currency Exposure Hedging Contingent Exposure Hedging Recurrent Exposure with Swap Contracts Hedging through Invoice Currency Hedging via Lead and Lag Exposure Netting International Finance in Practice:
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