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Please describe a public corporation and/or a financial manager's challenge relative to option markets. Please reference...

Please describe a public corporation and/or a financial manager's challenge relative to option markets. Please reference the source of article.

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options are used for hedging purpose , the public corporation or a financial manager challenge towards option market is that their is ambiguity in which situtation to hedge the portfolio and in which situation not to. Suppose a business is exporting some goods to foreign country it is very difficult to estimate whether the currency will appreciate or depreciate hence if one takes the position via option and if the currency become favorable to the business then the company can be at loss. Hence the main challange of public corporation and financial manager is to decide when to hedge and when to not.

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