After 1980s, international finance market has high speed of development. curiously after 21 century, come out many antithetic finance products on derivate market. From 2000-2005, total trade capital subjoin from $318 billion to $1,005,8 billion average fruit rate of fin years is 25.9%, and option market increase $66.4 billion to $402.6 billion, growth rate pre annual was 43.4%. (Contemporary finance & economics). Derivate products have twain sides on the scale, in one hand; it might sponsor company to hedging the risk. In other hand, it might charge up the company into finance problem. At the end of 2004, the China zephyr oil corporations Ltd (CAO) trade option of oil and finally make lost of $554 millions.
This report atomic number 18 aim to disclose the reasons of wherefore CAO making lose and return proper solution of utilise derivate tools to reduce risk. First section of this report will give briefly back ground information about CAO and oil industry. Second section is going to give the concept of derivate tools and course of instruction which CAO used and how to push the company into problem. The third chapter is going to reason the problems of why the company using wrong way of derivate toots and raise the better solution of how to use the derivate tools for case of CAO, it will in any case be provide other successful case in this chapter.
The final chapter will give the evaluation and conclusion of this report.
LimitationThere are two limitations of this report show as follow:1 Time limitation: Time is circumscribed for research2 Resource limited CAO did not disclose they annual report of year 20053 speech communication translate Some critical evaluate are fundamental on Chinese language website, difficult to translate in good order into English.
Chapter TwoCorporate backgroundChina aviation oil (capital of Singapore) corporation Ltd (CAO) was incorporated in Singapore on 26 may 1993.
If you want to get a full essay, order it on our website: OrderessayIf you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment