https://www.youtube.com/watch?v=yTxxSTXg404 This video has Closed Captioning. When the video starts, click on the CC icon and select from the menu. However, this captioning is computerized voice recognition, so the captions are not always correct. (The additional derivatives videos mentioned in this video are not yet available.) Too Many Derivatives from Which to Choose? A bookseller has long done business only within the United States. Recently its managers have decided to branch out. The company now has branches in Southeast Asia, the Middle East, and South America. A consequence is that the firm is now exposed to foreign exchange risks. It does business with two banks, which offer to provide hedging services for the firm using currency futures contacts and options contracts. Both banks, however, have just announced significant increases in their fees for providing these services. For this reason, the company's upper management is contemplating limiting their hedging activies to only one of the two currently used hedging methods. What issues do this firm's managers face as they consider the choice between options and futures?. 1.Under what circumstances would one hedge with options? Under what circumstances would one hedge with futures? What are the advantages and disadvantages of each hedging alternative? 2.Since the firm is using hedging to manage exchange rate risk, should the firm manage the hedging in-house, or should the firm agree to the higher fees and have the banks continue to manage the hedging activities? Case Studies follow the following general format: An Introduction where you explain the situation and the decision(s) facing the firm. Most, if not all, of this information will be in the case. Alternatives: here you define terms as needed and identify the alternative available to the firm. Evaluate the alternatives: discuss the advantages and disadvantages of each of the relevant alternatives. Recommendation and conclusion: select one of the alternatives as your recommendation. Support your recommendation with information used in your case analysis. Provide specific and detailed recommendations. Use additional resources as needed, but remember to cite and reference them properly using APA style. In a case you apply your knowledge of the material being covered in the class. As well as using your analysis skills as applied to the case information. Note: For a short case such as this one, the Alternatives discussion can be combined with the Evaluation discussion as single section of your case. Be sure to include APA formatted citations and references. Citations in the body of your case and references are required. (Apa.pptx) Your final case is due by 11:59:59 pm Sunday, and your case should consist of a miminum of 500 words. Do not attach your case. Post your work to the Reseach Forum board by clicking on Create New Thread. Do not upload it as a Word file. You can edit your work here throughout the week, if you want to incorporate material related to others' comments.The purpose of this exercise is to demonstrate your understanding of the material. Remember to include a word count at the bottom of your case. Now click on the Case Study text link above and go to the research forum. You can start a new thread by clicking on the Create Thread button at the top. You can also respond to an existing post by clicking the Respond button at the bottom of the post