As the regulatory environment in the rail industry, the profitability of J & L railway depends on the price of diesel fuel. In this case, the student must decide how much of the expected demand for fuel in the next year to be insured, and how it should be insured. Hedging alternatives include exchange futures and options, as well as commodity swaps, collars, and corridors, the proposed risk management of Continental Bank.
This Darden study. "Hide
by Kenneth Eades Source: Darden School of Business 15 pages. Publication Date: June 23, 1994. Prod. #: UV0251-PDF-ENG