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An Australian mining company exports iron ore to other countries, such as China, South Korea and Japan. Its annual report states that the company is

An Australian mining company exports iron ore to other countries, such as China, South Korea and Japan. Its annual report states that the company is exposed to the risk of falling oil prices.


Increasing interest rates and exchange rates fluctuations of various foreign currencies.


Required:

 Discuss derivative products that can be used to hedge the risks.



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To hedge the risks faced by the Australian mining company the following derivative products can be used 1 Oil Futures To hedge against falling oil pri... blur-text-image

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