Brief Course Description
1. Course Title:
Agricultural Commodities, Futures & Options
2. Language of Instruction:
Vietnamese
3. Course Code:
ECO501152
4. Credits:
3
5. Course Objectives:
6. Brief Description of Course Content:
Risk management is a vital part of any business but becomes more important for agribusiness firms involved in the international trade of agricultural commodities. Although there are many sources of risk, price risk management is of particular relevance to agribusinesses be they growers, trading companies or downstream processors.
The course offers students an introduction to the process of agricultural price risk management both from the perspective of a farmer as well as a trading company. We will investigate the various tools available to agribusiness managers to manage price risk and develop a framework for these managers to develop a price risk management strategy. In addition, you will be given an opportunity to utilize these tools through an on-line trading desk, to manage the price risk associated with wheat production. You will be exposed to the various contracts that can be used to transfer risk, such as pools, forward contracts, hectare contracts, multi-grade contracts, futures and options. We will also focus on in-class participation and assignments. During this course, students have chances to practically trade on the Mercantile Exchange of Vietnam, and learn from the experts of the top commodity trading companies.