While I think your article lends itself to some salient points, I think a deeper study of the Government of Ghana's Risk Management Policy shows(ed) a prudent approach to use the most conservative financial instruments to pro ... read full comment
While I think your article lends itself to some salient points, I think a deeper study of the Government of Ghana's Risk Management Policy shows(ed) a prudent approach to use the most conservative financial instruments to provide risk cover.
The purchase of Call Options is NOT a futures traded contract, it happens to be an Over The Counter Trade that provides the purchaser to cap its downside risk while allowing itself to participate in all the upside (minus the initial premium paid). This in principle acts pretty much like a Comprehensive Insurance Policy - you pay a premium to receive coverage in the event of a worst case scenario and in the event that nothing goes wrong - well then you are a happy camper and the premium is a sunk cost.
While I think your article lends itself to some salient points, I think a deeper study of the Government of Ghana's Risk Management Policy shows(ed) a prudent approach to use the most conservative financial instruments to pro ...
read full comment