Acpana Business Systems Inc.: Effect of Currency Exposure on Revenue

The Vice-president of Operations for Acpana Business Systems Inc. (Acpana), a Canadian software development and backup-as-a-service provider located in Toronto, Canada is concerned that the recent appreciation of the Canadian dollar was significantly affecting Acpana’s revenue and undermining the company’s organic growth. The case focuses on understanding and quantifying the risks associated with exchange rate fluctuations and its impact both of the firm's revenues and costs. The case introduces instruments available to hedge risk, including forward contracts and put and call options.