Question 14.17: The treasurer of the KSiR Corporation is attempting to manag...

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management [EXP-19651]

The treasurer of the KSiR Corporation is attempting to manage risks using options.
a. What option strategy can the treasurer take to protect against a rise in the cost of one of the company’s inputs in the production process, assuming that there is an option available?
b. What option strategy can the treasurer take to protect against a decline in the selling price of one of the company’s products assuming that there is an option available?

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