In October 2011, MF Global Holdings Ltd., a New York City brokerage firm, bankruptcy. Nearly a billion dollar was from client accounts that were missing from MF Global’s supposedly separate trading accounts. Thousands of U.S. farmers collectively lost millions in their trading accounts at MF Global. This notice explains the risks are many companies, including unknowable future commodity prices, interest rates and exchange rates and such derivative securities are often … Read more »

In October 2011, MF Global Holdings Ltd., a New York City brokerage firm, bankruptcy. Nearly a billion dollar was from client accounts that were missing from MF Global’s supposedly separate trading accounts. Thousands of U.S. farmers collectively lost millions in their trading accounts at MF Global. This notice explains the risks are many companies, including unknowable future commodity prices, interest rates and exchange rates and such derivative securities are often used to hedge or protect against these risks.
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Brandt R. Allen
3 pages.
Release Date: 29 January 2013. Prod #: UV6594-PDF-ENG
Derivatives and hedging HBR case solution

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