How companies can hedge commodity costs with futures
This illustrates how a company which depends on copper as an input (e.g., a computer maker) can use copper futures contracts to hedge its exposure (the anticipation of copper spot price increases).
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Time
: 9 min
40
Added
: 29/04/08 18:51
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Metallgesellschaft case on hedging disasters
In MG, the underlyings were short positions in long-term forward contracts to deliver oil. The hedge was a stack-and-roll hedge: long positions in short-term futures contracts that were rolled over consecutively. The strategy depended on the continuation of (i) stable or gently increasing spot oil prices and (ii) backwardation
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Time
: 6 min
19
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: 10/11/08 21:59
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182.Introduction to Futures Trading 3 - The Futures Contract
http://www.informedtrades.com/
The next lesson in our free video futures trading course which covers how the futures exchange and futures contract standardize the process of hedging.
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Time
: 7 min
24
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: 15/12/08 22:21
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