Derivative Markets 2nd Edition Robert L.Mcdonald 原版课件_CH04.pptVIP

Chapter 4 Introduction toRisk Management Basic Risk Management Firms convert inputs into goods and services output input commodity producer buyer A firm is profitable if the cost of what it produces exceeds the cost of its inputs A firm that actively uses derivatives and other techniques to alter its risk and protect its profitability is engaging in risk management The Producer’s Perspective A producer selling a risky commodity has an inherent long position in this commodity When the price of the commodity , the