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Kendall Power Plant (B): Hedging

Bodily, Samuel E.,...

Case

Kendall Power Plant (B): Hedging

Bodily, Samuel E.; Smith, Raiford; Palacios, Miguel

QA-0598 | Published December 17, 2002 | 2 pages Case

Collection: Darden School of Business

Product Details

The B case adds the possibility of using hedging to manage risks. The impact of hedging on the distribution of profits and particularly its variance is analyzed to understand the value that hedging creates for Spiegel. Students will analyze how hedging reduces risk and find optimal hedging plans using an optimizer such as OptQuest? (used with Crystal Ball) or Risk Optimizer? (used with @Risk).

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