Case Analysis And Optimization Strategy Of S Steel Company Using Iron Ore Option To Hedge

Hedging is a common trading method in the futures and options market.In order to ensure that hedging plays a role under the expected price,investment institutions,securities companies and option issuers often use the method of option futures hedging to control the risk of price fluctuation and ensure the return.Option hedging does not need to add margin like futures hedging,and the hedging effect is more prominent,and the option hedging strategy is more diverse and flexible.Therefore,in-depth study of option hedging is of great significance.Firstly,combined with the development background of option hedging,this paper puts forward the problems that need to be studied,combs and integrates the relevant research results of hedging at home and abroad,and selects the case enterprise of this paper-s Iron and steel company.Then,combined with the analysis of option hedging process of s Iron and steel company,this paper expounds several factors affecting iron ore price.Then,it focuses on the formulation and implementation of iron ore option hedging scheme of s Iron and steel company.Further analysis shows that there are several problems in the design and implementation of option hedging scheme in s Iron and Steel Company: first,ignoring the estimation of hedging ratio;Second,the hedging strategy is not scientific;Third,the hedging strategy is relatively single.Next,this paper introduces the optimal hedging ratio,delta neutral hedging strategy and option portfolio strategy to optimize the option hedging of s Iron and steel company.It is found that s Iron and steel company performs the best wide-span option portfolio hedging strategy,followed by delta neutral hedging strategy,with the best risk control performance,followed by other strategies.Finally,this paper believes that through the use of iron ore option hedging,we need to start from the following aspects: first,we need to fully do the preliminary market research and estimate the hedging benefit;Second,comprehensively judge the timing of hedging,pay attention to the macroeconomic environment at home and abroad,and strengthen the study and judgment of changes in iron ore market;Third,we need to improve the hedging trading strategy,avoid blind speculation,pay attention to optimizing the single hedging strategy and explore the combined hedging strategy;Fourth,improve the hedging risk control system,improve the comprehensive risk monitoring ability,improve the internal risk control system of the enterprise,and correctly judge the risk exposure of the enterprise;Fifth,enterprises should not ignore strengthening the construction of professional talents.