Financial Derivatives and Gold: Choosing the Appropriate Risk Hedging Instrument under COVID-19 Crisis
Zhaoru Shao
Abstract:This essay delves into the strategic use of financial derivatives and gold as instruments for hedging against market volatility, with a specific focus on the energy and food sectors. By analyzing case studies of prominent entities like Sinopec, BP, Bunge, and the Russian Federation, the paper elucidates how these entities have leveraged futures, options, swaps, and gold to shield themselves from the perils posed by price fluctuations, exchange rate fluctuations, and geopolitical tensions. In this examination, … Show more
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