JEL classification: F65; G11; G15
Introduction. One of the peculiarities of Ukrainian agrarian market functioning is the growth of uncertainties, whose impact has increased significantly as a result of globalization processes. The constant change of external and internal factors causes risks, which become the main problem of management, as they determine the directions and production efficiency and agricultural products sale. Therefore, there is a need to apply progressive risk management methods and tools that are effective and efficient under current conditions. Companies use derivatives (trusted derivatives) to turn their cases around and limit uncertainty about future businesses for revitalization. Therefore, derivatives are actually invested in some economies and make their effectiveness for a higher level of valuable assets in the course of exchange trading.
The purpose of the article is to substantiate scientifically theoretical positions and methodological approaches, to develop alternative risk management strategies through stock exchange instruments, namely types of derivatives – options.
Results. The importance of theoretical bases formation of the risk essence is substantiated that can be faced by domestic producers. The ways of uncertainties occurrence, stages of their transformation are explained. The theoretical approach to risk management through the use of futures contracts is systematized. The historical stages of using derivatives development have been evaluated. The new approach to risk management is proposed through the use of the optional Collar strategy.
Conclusions. Any business activity is unthinkable without risks in developed countries, so any manufacturer seeks to insure its risk, including through a fixed market. The terminal market allows for redistribution of risks among market participants, on which a particular derivative operates. The advantage of derivatives is the leverage that allows participants to operate large amounts of risk management funds, including hedging their own products.
Keywords: risk, risk management, risk management, hedges, options, futures, derivatives, derivatives.
- Faber, I. «Yak mozhut’ nastil’ky vidrizniatysia prohnozy?». [“How can forecasts differ so much?”]. URL: https://towardsdatascience.com/
- Renni, Dzh. «Yak skladne tsile vynykaie z prostykh chastyn?». [“How does a complex whole come from the simple parts?”]. URL: https://www.quantamagazine.org/emergence-how-complex-wholes-emerge-from-simple-parts-20181220
- Derivativy. Kurs dlja nachinajushhih. [Derivatives. Beginners Course]. (Reuters for Financiers Series). (2012). Trans. from angl. Al’pina Pablisher. Moscow. Russia.
- Veber, Enrst Yun. (2008). Korotka Istoriia Deryvatyviv. [A Brief History of Derivatives]. University of Western Australia. p. 11–12.
- Solodkyj, M., Hnyliak, V. (2012). «Development of the world stock exchange derivatives market». Formuvannia rynkovykh vidnosyn v Ukraini. № 8. S. 3-8. URL: http://nbuv.gov. ua/UJRN/frvu_2012_8_3
- Hull, J. C. (2003). Options, futures and other derivatives. 5th ed. New Jersey: University of Toronto, Prentice Hall, Englewood Cliffs.
- Prymostka, L. Finansovi deryvatyvy: analitychni ta oblikovi aspekty. [Financial derivatives: analytical and accounting aspects]. KNEU. Kyiv. Ukraine.
- Moss D., Kinthen Ye. (2010). «The Dodjimb Rice Exchange and Other Features of Futures Trading». Harvard Business School: Boston, 10 November, рp. 34-78.
- Elman, A. (2009). Al’ternatyvni sposoby vykorystannia stratehii. [Alternative ways to use strategy]. Covered Calls.
The article was received 29.08.2019