Basis for financial risk management strategy

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Reference no: EM132369682

Financial managers make use of derivatives, such as options, forwards, futures, and swaps as the basis for a financial risk management strategy. These derivatives all play a role in this process and provide the company instruments that can be used to mitigate risk.

Please select one of the following derivative instrument(s):

• Forward/futures contracts

• Swaps

• Options

• Collars.

For the selected instrument can you please provide the following:

• Detailed explanation of the instrument

• How it can be used as part of a hedging program

• Limitations of the instrument

• The regulatory environment surrounding this instrument included required disclosures, etc.

• How this instrument is priced.

The goal of this project is to provide a comprehensive overview of this specific instrument that could be used as a user's guide for future risk management professionals as they consider the use of this instrument as part of their financial risk management strategy.

Your total project should be 3 pages long. Spend time to ensure that the formatting complies with CSU-Global Guide to Writing and APA Requirements (Links to an external site.), and thoroughly proofread and grammar-check your final product. Review the Portfolio Project grading rubric in the Module 8 folder. Ensure you have both a title and reference page which includes 6-8 resources. The CSU-Global Library is a great place to find these sources! Your references must be credible and be formatted according to CSU-Global APA guidelines. Upload your completed work to the Module 8 folder.

Preliminary Deliverable: You are required to submit a draft outline of your Portfolio Project to the instructor by the end of Week 5. Your outline should be a Word document in which you will list the major headings and sections of your paper.

Reference no: EM132369682

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