S 2885 1999 us 24173 the contracts expire in january

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: s been investing substantially all of its financial resources in longterm U.S. dollar denominated or U.S. dollar indexed available-for-sale debt securities to protect against the exchange risk of a devaluation of the Brazilian real in relation to the U.S. dollar. (b) Interest Rate Risk Management The Company´s strategy for interest rate management has been to maintain a diversified portfolio of interest rates in order to optimize cost and volatility. The Company’s interest rate risk management strategy may use derivative instruments to reduce earnings fluctuations attributable to interest rate volatility. The Company may use interest rate swaps to implement this strategy. At December 31, 2000 the Company had no outstanding interest rate swap contracts. (c) Commodity Price Risk Management The Company is exposed to commodity price risks through the fluctuation of pulp prices. The Company currently does not utilize derivative financial instruments to manage its exposure to fluctuations in co...
View Full Document

This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

Ask a homework question - tutors are online