Why do firms like southwest hedge

Reference no: EM131006224

1st question must be 200 words, 2nd questions 300 words, 3rd question 500 words

Your Subject : Alternative Investments

Your Message : Answer the following questions using support from the provided documents. Case 1 is the main document and spells out the issues in airlines and fuel cost. The excel files provide data on the fuel costs. The pdf is just about the current situation in hedging with fuel for these airlines.

1. Why do firms like Southwest hedge? What are the benefits of hedging?

2. Evaluate the plain vanilla swaps strategy vs the Call Options (Caps) strategy. Which one do you prefer and why?

3. What do you recommend to Scott Topping? Why?

Words Limit: 1000

Attachment:- Assignment.zip

Reference no: EM131006224

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