by Fantaz Question by Hajra Asif: How many non financial companies in pakistan are using derivatives? Derivatives like futures, forwards, swaps, and options. Best answer: Answer by GraybeardDerivatives exist for non-financial companies to use. An example would be an airline investing in oil futures as a hedge against an increase in fuel costs; as the cost of fuel rises, so do the gains in the futures investments. It is the role of the clever finance staff at the non-finance company to work out derivative deals that are advantageous to the company. Another example would be a breakfast cereal manufacturer investing in corn options; the contracts lock in prices to make cash flows more predictable into the next quarter. I cannot…. Read more
