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1. Rinaldo's is a high-end jeweler with one retail location on Fifth Avenue in New York City. The majority of sales are sophisticated pieces that

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1. Rinaldo's is a high-end jeweler with one retail location on Fifth Avenue in New York City. The majority of sales are sophisticated pieces that sell for $5,000 or more and are Rinaldo's own artistic creations using precious metals and stones. The raw materials are purchased primarily in Africa (gold, platinum, and diamonds) and South America (silver). Owing to a large amount of international marketing efforts, Internet and catalog sales represent over 45 percent of the total $300 million in annual sales revenue. To accommodate his customers, Rinaldo will accept both the U.S. dollar and other foreign currencies as a form of payment. Acting as an enterprise risk manager consultant, create a (subjective) risk map to identify Rinaldo's risks across the four basic categories of business/strategic risk, operational risk, financial risk, and hazard risk. Carson Company may need to increase its production capacity by about 50 percent over the next few years to satisfy demand. It would need financing to expand and accommodate the increase in production. The yield curve is currently upward sloping, and Carson is concerned about a possible slowing of the economy because of potential Fed actions to reduce inflation. Carson currently relies mostly on commercial loans with floating interest rates for its debt financing. How could Carson use futures contracts to reduce the exposure of its future cost of debt to interest rate movements? Carson could buy Treasury bond futures contracts. Carson could buy Eurodollar futures contracts. Carson could sell oil futures contracts. Carson could sell Treasury bill futures contracts

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