What is the best hedging strategy for a company at the current economy crisis?

Discussion in 'Risk Management' started by mzpnda, Sep 20, 2009.

  1. mzpnda

    mzpnda

    This is an assignment question and I need help.

    I have a company with a portfolio that mimics the ASX Small Ordinaries Index with value of $750 000 000 and I want to make sure that the value is the same after 6 months.

    What is the recommended hedging strategy for my company in the global financial crisis?

    I need an informed recommendation so any good websites?
     
  2. Assuming you are very new to trading, the answer is screamingly obvious. Short that amount of that index. That is the whole point of hedging and a large reason that futures exist (for hedging).
     
  3. Headline

    Headline

    wow TZ

    such a good and clear cut answer

    you are learning slowly, too bad by the time you learn for real

    your country will be in Civil War when Average Joe wakes up to reality of US banking