Research Of Hedging Theory And It's Application

After financial crisis happened in 2008, Price influence of most commodities is large, especially the copper price, which took more commercial risks to small enterprises, engaged in smelting process. Every enterprise engaged in smelting process must face the truce that they need avoid the risk of Price influence reasonably.In this dissertation, we describe the development history of hedging business, the main characteristic and main effect in the enterprises operating. The hedging business not only can stable the price of the products and cost of production and operating, but also can do great contribution to stable the total cost of society. The business hedging of commercial goods not only avoid the risk of Price influence, but also can offer a chance for the enterprises to earn profits. On the basic of business hedging, making use of interest arbitrage can reduce the operating cost of an enterprise, and make profit maximization.In this dissertation, I use company A's operation situation as an example and do an analysis how to recognize the fluctuating prices of copper and how to avoid the risk of operating and how to use the business hedging and how to make use of the hedging in the severe economic environment. Reduce the loss of company A due to the fluctuating prices, and give the measure of how to make use of business hedging in copper processing enterprise to avoid the risk of fluctuating prices at the same time.