For this milestone, you will discuss the potential risks and benefits associated with each of the derivative instruments that you are recommending to address the needs of the problem within the case study scenario—including how these risks and benefits can have an impact on the company’s return. You will examine the external and internal factors (and the potential impact of these factors) that the company will need to consider in its investment decisions. 

Instructions

For this milestone, you will discuss the potential risks and benefits associated with each of the derivative instruments that you are recommending to address the needs of the problem within the case study scenario—including how these risks and benefits can have an impact on the company’s return. You will examine the external and internal factors (and the potential impact of these factors) that the company will need to consider in its investment decisions. 

In addition, you will also calculate the potential price impact of the derivative instruments that you are recommending. These calculations will be included in an Excel spreadsheet, which will serve as an appendix to your final portfolio proposal.

To complete this assignment, review the Final Project One Milestone Two Guidelines and Rubric document.

Instructor Feedback

Cheng, you did well but missed one section where you have to create a table showing actual price changes on your derivative instrument. Create the table and put it in and I will re-grade for you.

Price Impact: Spreadsheet Appendix: Take one of your derivative instruments and create a spreadsheet that shows what happens if the underlying asset moves. As an example, take your currency derivative and show what happens if the currency weakens or appreciates by 5%, 10%, and 20%. Put this in a table and you can paste it right into your document.

Please revise my original paper that I got F according to instructor feedback and please focus on every elements in rubric!!!!!!