Derivatives and Risk Management(英文版)(ppt 34頁)

Derivatives and Risk Management(英文版)內容提要：
Reasons Risk Management Might Increase the Value of a Corporation
Increase their use of debt.
Maintain their optimal capital budget.
Avoid financial distress costs.
Utilize their comparative advantages in hedging, compared to investors.
Reduce the risks and costs of borrowing.
Reduce the higher taxes that result from fluctuating earnings.
Initiate compensation programs to reward managers for achieving stable earnings.
What is an option?
An option is a contract that gives its holder the right, but not the obligation, to buy (or sell) an asset at some predetermined price within a specified period of time.

..............................