Assignment: Financial Managers
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.
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.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.