case08 - Introduction to derivatives, Fall 2011 BUSI 588,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Introduction to derivatives, Fall 2011 BUSI 588, Case 8 Aureliano Buend a and hedging Please prepare for class discussion on Wednesday, 9/21. Colonel Aureliano Buend a, now managing director of UBS (Ursula Banking Services), is working late on this hot summer day in Macondo. So today, of all days, the only technical guy in the office decides to quit. Who is going to place the orders for the hedging? Volunteers? Florentino, knowing you will be visiting Macondo this evening, steps up to the plate: At your service Colonel, my years as a tree-cutter black-hole cleaner will come in handy for this hedging business. Just tell me what trades we put on today. Colonel Aureliano Buend a admits the truth Actually, I do not remember even how many sons I have, how can I remember what the firm traded on today? I do know we took a couple of positions in copper today, so just make sure we are delta-hedged on copper. After looking over the books an accountant called Melqu...
View Full Document

Ask a homework question - tutors are online