Essay, Finance and Accounting
In this paper, you need to read the case first and then answer the three questions, which are :
1. Why do firms like Southwest hedge? What are the benefits of hedging?
( About 200 words)
2. Evaluate the plain vanilla swaps strategy vs the Call Options (Caps) strategy. Which
one do you prefer and why?
( About 300 words)
3. What do you recommend to Scott Topping? Why?
(About 500 words)