Derivative Instruments & Financial Engineering
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.
Please select one of the following derivative instrument(s):
- Forward/futures contracts
For the selected instrument can you please provide the following:
- A 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.
Your total project should be 8-10 pages long. Spend time to ensure that the formatting complies with CSU-Global Guide to Writing and APA Requirements (Links to an external site.), and thoroughly proofread and grammar-check your final product. Review the Portfolio Project grading rubric in the Module 8 folder. Ensure you have both a title and reference page which includes 6-8 resources. The CSU-Global Library is a great place to find these sources! Your references must be credible and be formatted according to CSU-Global APA guidelines. Upload your completed work to the Module 8 folder.
Preliminary Deliverable: You are required to submit a draft outline of your Portfolio Project to the instructor by the end of Week 5. Your outline should be a Word document in which you will list the major headings and sections of your paper.