Milestone Assignment

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Economics

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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.

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FIN 670 Final Project I Milestone Two Guidelines and Rubric Risks and Benefits and Price Impact Overview: For this first milestone, due in Module Five, 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. Prompt: First, review the case that you have chosen for your final project, as well as the accompanying spreadsheet for the case, and in a 2- to 3-page paper address the following critical elements: II. III. Risks and Benefits A. Discuss potential risks and benefits associated with each instrument and how those risks could have an impact on return. B. Assess the impacts of multiple extrinsic and intrinsic factors that the company will want to consider based on how they influence value and price. Price Impact (Spreadsheet Appendix) A. Calculate the potential price impact of extrinsic and intrinsic factors, and expected mitigated risk value of recommended derivative instruments. Present this information in your spreadsheet, and include it as an appendix. Refer to the Module Five resources and other course resources to support your responses. Be sure to apply instructor feedback on this milestone to your final project. Rubric Guidelines for Submission: This milestone should be submitted as a Word document, 2–3 pages in length, double-spaced, using 12-point Times New Roman font, one-inch margins, and the latest edition of the APA manual for formatting and citations. Critical Elements Risks and Benefits Proficient (100%) Discusses potential risks and benefits associated with each instrument and how those risks could have an impact on return Extrinsic and Intrinsic Factors Assesses the impacts of multiple extrinsic and intrinsic factors that the company will want to consider based how they influence value and price Needs Improvement (75%) Discusses potential risks and benefits associated with each instrument, but explanation of benefits and of how risks could have an impact on return is lacking in detail Assesses extrinsic and intrinsic factors that the company will want to consider in its investment decisions, but factors identified are illogical Not Evident (0%) Does not discuss potential risks and benefits associated with each instrument Does not assess extrinsic and intrinsic factors that the company will want to consider in its investment decisions Value 30 30 Price Impact: Spreadsheet Appendix Articulation of Response Calculates the potential price impact of extrinsic and intrinsic factors and expected mitigated risk value of recommended derivative instruments; information is presented in a spreadsheet appendix Submission has no major errors related to citations, grammar, spelling, syntax, or organization Calculates the potential price impact of extrinsic and intrinsic factors and expected mitigated risk value, but calculations are illogical Does not calculate potential price impact of extrinsic and intrinsic factors 30 Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100%
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Running Head: MILESTONE ASSIGNMENT

Milestone Assignment
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MILESTONE ASSIGNMENT

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Existing companies in the modern day business are working upon various risks associated
with doing business. The factors such as global currency changes as well as the internal workings
of the suppliers and the production together with the customers affect the overall working in the
organization. The businesses tend to change from time to time to react to real-time issues and
adjust to the necessary environment.
Issues of currency values, as well as fall and the rise in the same, are just some of the
challenges that beckon the risks handled by the organization. Arguably, the most visible risks of
exposure to the transaction as well as the ones related to financial instruments are the one taking
the time of the companies (L...


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