1. From a current issue of The Wall Street Journal (or, pick any one agricultural commodity (from corn to orange juice)
•Choose to be EITHER the producer of this commodity OR the buyer (for either reselling or using in your own production)
•Based on current domestic and global conditions*, how would you use derivatives to protect potential future profits? For example, you are Southwest Airlines going long in crude oil futures to offset an increase in price of aviation fuel
•*You must cite your sources (i.e., WSJ report stating OPEC may cut production)
2. Why and how futures can hedge the risk?

  • CreatedJuly 26, 2013
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