Consider the situation of United Airlines (UA), an international airline based in United States of America. As part of its business it is heavily exposed to fluctuations in the price of jet fuel and foreign exchange rates. It sells tickets in foreign currencies and has significant EUR costs. For either jet fuel costs or forex, evaluate one derivative product UA could use to hedge fluctuations in the underlying price.

Briefly describe how the product would be used to hedge the fluctuations

Discuss the pros and cons of this product

Suggestions and recommendations

Your answer should be no more than 500 words