TSXV:CAV.H - Post by User
Comment by
lemonfruitson Oct 25, 2007 3:22pm
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Post# 13690072
RE: Hedging
RE: Hedgingyeah...well..the financial mechanisms are out there and all used regularly. Rather than read here, i suggest you check out the London Metal Exchange website
www.lme.co.uk
there is a whole tutorial section on how hedging, call options, put options and forward contracts work for hard commodities.
As for what price to set, that is surely part of the ongoing negotiations between BA and the bankers that's happening now.