2. A current situation in the economy or at your company that might necessitate hedging. Do you think companies should hedge away these types of risks, or leave it to their investors to do? What are the pros and cons of each approach?
4. Discuss the different instruments you could use to put your hedges in place. What are their strengths and weaknesses?

Answer rating: 100% (QA)

One current situation in the economy that might necessitate hedging for companies is volatility in commodity prices For example fluctuations in oil prices can significantly impact businesses across va... View the full answer