Derivatives as security against market risk on the example of the selected companies

Abstract

Company operating in current economic conditions are exposed to a series of different kinds of risk. In order to secure against some of them, firms may apply hedging, i.e. use of derivative instruments. This paper focus on the problem of using derivatives for the needs of reducing market risk, based on the example of KGHM Polska Miedź SA and PGNiG SA.

Keywords

• derivative
• risk
• hedging