Options for hedging and contract specifications

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Reference no: EM133121217

Choose Intel (INTC) or Ford Motor Co. (F) or a company of your choosing which could benefit from a risk management strategy that uses futures. Please include the following items.

1. Executive Summary

2. Key Assumptions associated

3. The nature and quantity of the risk and justification for risk management.

4. Options for Hedging and Contract Specifications

5. Some evidence to support historically how the hedged position would or would not have been effective.

6. Where an exact hedging instrument does not exist, please defend your selection on the basis of high correlation with the underlying exposure and liquidity (which you should justify with statistical analysis).

7. Information on a wide variety of futures contracts can be found at www.cmegroup.com.

Please list your sources.

Reference no: EM133121217

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