Today is 13th December 2019. You work in the risk management department of a large publicly listed manufacturing company. Your company will need to purchase 1000 units of asset S on the 15th of February 2020. Asset S is a consumption asset that is crucial for production in your company.

a) Suggest some alternative approaches to forwards and futures for hedging in the context of this question.

b) What are the advantages and disadvantages of each of the other approaches?

c) Before you make a final recommendation on the hedging strategy, what other information could you request from upper management?