April 2000
Beginner
304 pages
6h 58m
English
The company in our first case study is one of the larger carmakers in the world. We will examine this commodity end-user's exposure to metal, its risk management (RM) response, and some of the specific deals it transacts to hedge its exposures. Next, we will study an intermediary. The Enron story is quite remarkable. The company had the vision to become the market intermediary well before its competitors and even before the market existed. The successful execution of that vision and the resulting dominance in natural gas markets have made this a classic business case. Besides illustrating the risks in commodities and the concurrent market dynamics, these specific cases identify the fundamental features of risk ...
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