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Application of PTA OTC option in enterprise risk management
!!Wang Minnan, Vice General Manager of Shenyin&Wanguo Zhifu Investment Co., Ltd.,

2019-03-22 11:30:04

Wang Minnan, Vice General Manager of Shenyin&Wanguo Zhifu Investment Co., Ltd., delivers his report of Application of PTA OTC option in enterprise risk management 

 


Mr. Wang mentioned that the traditional business model of enterprises mainly consists of raw materials inventory and finished product inventory through procurement, production and sales. The flow of funds is slow and the business model is very problematic. In order to improve competitiveness, modern enterprises must properly use derivative tools to innovate business models. An option is a risk management tool derived from futures that serves the same spot as futures. It is similar to price insurance and can be used to hedge the risk of large price fluctuations. The options strategy is rich and can be designed for different scenarios in the market. OTC options are personalized services tailored to the needs of the company. By using options, you can avoid price risk, and if the direction is wrong, you can control the loss to a limited extent. Finally, Mr. Wang explained the way the options are used in the actual application process and the advantages and disadvantages brought by the case analysis. 
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