Simulation of balance sheet risk
Which hedging strategy the company is to choose demands knowledge about what covenant is the most at risk. How likely is it that the company will face a breech?
Which hedging strategy the company is to choose demands knowledge about what covenant is the most at risk. How likely is it that the company will face a breech?
A hedging strategy should be oriented towards hedging the company’s market value to build shareholder value …
In the following we will illustrate some of the risks the bioethanol producer is facing using corn as feedstock. However, these risks will persist regardless of the feedstock and production process chosen.