1. Presidents of Ghana Research Foundation is to be established with a gift from Franklin in memory of deceased Accra flooding disaster. The foundations grant making and investment policy issues have been finalized. Receipt of the expected GHC 45 million Franklin cash gift will not occur for 90 days, yet the committee believes current stock and bond prices are unusually attractive and wishes to take advantage of this perceived opportunity.

1. Briefly describe two strategies that utilize derivative financial instruments and could be implemented to take advantage of the committees market expectations.

2. Evaluate whether or not it is appropriate for the foundation to undertake a derivatives based hedge to bridge the expected 90 day time gap, considering both positive and negative factors