Derivatives

write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Use the Internet to select and research an existing company for this discussion. Be sure to choose a real company because your research may involve finding and reading company reports.

Focus your discussion on the following:

  • How does the company use derivatives as a means to manage risk and enhance returns?

Be sure to discuss how the following can be used to manage the risk of the selected company:

  • Options
  • Forwards
  • Futures