【中山大学431金融 罗斯 公司理财】Topic_19_E1.pdfVIP

Topic 19, Exercise 1 Hedging for Commodity Prices Firms use a variety of hedging techniques to manage their risks. They can use futures contracts, option contracts, swaps, insurance contracts and exotic instruments to hedge various types of risk. In “Cover Your Assets,” the author describes some hedging activities by commodity firms. These are companies that produce products influenced by commodity prices. Example of these types of firms include oil and gas production firms and firms involved with the gold industry.