Concepts Review and Critical Thinking Questions

1. Hedging Strategies If a firm is selling futures contracts on lumber as a hedging strategy, what must be true about the firm's exposure to lumber prices?

2. Hedging Strategies If a firm is buying call options on pork belly futures as a hedging strategy, what must be true about the firm's exposure to pork belly prices?

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

VIII. Topics in Corporate Finance

23. Risk Management: An Introduction to Financial Engineering

© The McGraw-Hill Companies, 2002

CHAPTER 23 Risk Management: An Introduction to Financial Engineering

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