Case Studies in Financial Instrument Applications

In this section

• Hedging a Stock Position with Put Options
  See how put options can be used to limit downside risk while maintaining exposure to a stock position.
• Speculating with Futures Contracts
  Understand how traders use futures to express price views and how leverage and margin affect outcomes.
• Managing Currency Risk with Forward Contracts
  Learn how forward contracts can lock in exchange rates and reduce uncertainty around foreign-currency cash flows.
• Interest Rate Swaps in Practice
  Understand how interest rate swaps exchange fixed and floating cash flows and why firms use them.