currencies Financial instruments used by commodity and currency market participants to hedge risk How to measure manage commodity and foreign exchange FX risk ACE499 FALL 2018 ID: 1028458
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1. WHATLearn: What drives currencies Financial instruments used by commodity and currency market participants to hedge riskHow to measure / manage commodity and foreign exchange (FX) risk ACE-499 | FALL 2018Commodity and Currency Risk ManagementMichel Robe (The Clearing Corp. Foundation Professor in Derivatives Trading)HOWClass / LecturesIndustry expertsCase studies2 Pre-reqs:FIN-221and Stats course (e.g., ACE-261)1 Co-req:ACE-428 or FIN-412or equivalentWHY1. Commodity price riskcommodity producers exposed to price falls End users (clothing companies, airlines, etc.) exposed to rising pricesTransformers (refineries, ethanol producers, etc.) worry about price differentials between inputs and outputs 2. Currency riskCommodity trading takes place worldwide