Briefly explain how a firm can hedge its risks using options.

What will be an ideal response?


A firm can use put options, for example, to manage the risk that an asset it owns (or will own) will decrease in value. For example, an oil exporting country can purchase call options to hedge the risk that its future oil production will fall in value if oil prices decrease.

Likewise, the firm can purchase call options on assets that it will need.

Business

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Which of the following is a difference between subtle sales messages and direct sales messages??

A) ?Subtle sales messages are never included in adjustments, whereas direct sales messages are always included in adjustments. B) ?Subtle sales message include persuasive arguments, whereas direct sales messages do not include persuasive arguments. C) ?Subtle sales messages have a good chance of being read, whereas direct sales messages might not be read at all. D) ?Subtle sales messages discuss goods or services already bought, whereas direct sales messages include statements about related merchandise.

Business

A paralegal should maintain a list of clients and types of cases represented:

A) to maintain a conflict check. B) to solicit clients if freelance work becomes an employment option. C) to solicit clients if employment with another law firm occurs. D) to ensure the accuracy of the billing sent to the clients.

Business

Product lines are often evaluated as profit centers.

Answer the following statement true (T) or false (F)

Business

A privilege may result in immunity from tort liability

a. True b. False Indicate whether the statement is true or false

Business