You are a trainee at Briggs and Clam LLP (BC). BC is a highly respected City law rm that is committed to delivering an excellent legal service to its clients. The rm has ofces in London and 7 major cities nationwide. It delivers international expertise through its exceptional network of contacts worldwide. Over the last few years BC has been successful in growing its business organically. It invested in technology at the rm two years ago and is now in a relatively mature position, able to streamline processes and offer clients the efciency and price savings that the investment brings. BC has a strong cross department technology focus in terms of its legal work. BC draws on technology specialists from its core commercial, corporate. employment, funds and disputes practices, enabling it to provide a rounded offering to technology companies and buyers of their services. Technology litigator Carol Baume is highly regarded and rated in Legal 500 as a \"Leading Individual" for technology disputes, often with cross-border elements. Some of the rm's international clients have recently moved to rms who have an international presence especially those with ofces across Europe, notably France and Germany. In addition, a significant number of corporate clients have left the rm to use the legal services of accounting rms. The rm maintains excellent relationships with its established clients and relies on repeat business from them. The partners at the rm spend a lot of personal effort in developing close relationships with clients to create a strong sense of personal service. The rm prides itself on the quality of its legal advice and has not traditionally been very active at promoting itself. There is pressure to increase the client base to generate new business. BC has recruited two general counsel from international companies to join as partners, resulting in a signicant amount of new work. QUESTION 1 Your client, Sweet Things Limited (Sweet Things) is a large well-established confectionary manufacturer. Sweet Things make a wide variety of confectionary, cakes and treats which it supplies to supermarkets and sweet shops nationwide. Sweet Things are meeting you and your supervisor, Rani Patel later today. Rani tells you that Sweet Things are considering hedging their exposure to the uctuating price of sugar. Rani has invited a new trainee to join the meeting. She has asked you to draft a note for the new trainee explaining: (3) Why Sweet Things are considering a derivative from a commercial perspective. (b) The relative advantages and disadvantages of a future and option derivative contract in this particular scenario and (c) On balance whether you think Sweet Things will choose a future, an option or a combination