Explain the differences between Options and Futures Contracts? Using one example, how Options and Futures Contracts can be used to hedge against risk? (You have to mention one academic reference) Could you make your answer (100-200 words)?
Note:
Could you make this discussion more realistic by commenting on the post of at least 2 of your classmates?
Week 5: Interactive activity
5.1-Learning Outcomes
Upon successful completion of this module, the student will be able to:
Describe the contents and uses of a financial plan.
Construct a simple financial planning model.
Estimate the effect of growth on the need for external financing.
5.2-Reading
Read the following to prepare for this week:
Chapter 18
5.3 -Test your Knowledge (Question):
* What are the contents and uses of a financial plan?( Words-100 )
5.4 Instructions
Answer the question in the test your knowledge section.
Post your answer in the discussion board using the discussion link available at BB (Week-5:Interactive learning Discussion)
Week 12: Interactive activity
12.1- Learning Outcomes
Upon successful completion of this module, the student will be able to:
Identify and explain the six most important ideas in finance.
Identify and explain the nine unsolved problems in finance.
12.2- Reading
Read the following to prepare for this week:
Chapter 25
12.3 – Test your Knowledge (Question):
@ What determines project risk and PV?
12.4 – Instructions
Answer the question in the test your knowledge section.
Post your answer in the discussion board using the discussion link available at BB (Week-12:Interactive learning Discussion)
Week 11:Interactive Learning Activity
11.1- Learning Outcomes
@Upon successful completion of this module, the student will be able to:
Understand why companies hedge to reduce risk.
Use options, futures, and forward contracts to devise simple hedging strategies.
11.2- Reading
Read the following to prepare for this week:
Chapter 24,
11.3 -Test your Knowledge (Question):
@ What is the basic difference between hedgers and speculators?
11.4-Instructions
Answer the question in the test your knowledge section.
Post your answer in the discussion board using the discussion link available at BB (Week-11:Interactive learning Discussion)