Risk Management Paper

Risk Management Paper - Risk Management Paper 1 Risk...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Risk Management Paper Risk Management Paper University of Phoenix FIN 415 October 2, 2008 Introduction 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Risk Management Paper The business world today is a risky place. This can be especially true when doing business outside of the firm’s home nation. Luckily, businesses today have financial instruments at their disposal to help them to manage the risks involved in doing business both domestically and overseas. These instruments include forward contracts as well as futures contracts that help to minimize the risk of doing business. Without these financial instruments the business world would be a much more uncertain place. Forward Contracts A forward contract is a method by which two parties who wish to do business can minimize the uncertainty involved in a transaction. The forward contract accomplishes this by establishing a price today for a commodity that will be delivered at some agreed upon future date. The Investopedia.com (2008) stated, “A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined on the initial trade
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/17/2011 for the course BUS 200 taught by Professor Torres during the Spring '11 term at University of Phoenix.

Page1 / 4

Risk Management Paper - Risk Management Paper 1 Risk...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online