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

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

Derivatives

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

Solution Preview

Derivatives are necessary for any business organization as they can help to reduce the uncertainty of undesirable occurrences by changing financial implications that could face organizations as a result of volatility in the market prices, currencies or cost of operation………………………..

APA

601 Words