Oil Prices and the Finance Industry

FNCE102 - FINANCIAL INSTRUMENTS, INSTITUTIONS AND MARKETS

FNCE102

Research Report

Done by: Chan Yan Shan Matthew Chay Liew Jing Sheng Kerh Han Xin Cynthia Yiew Prepared for: Prof Chan Soon Huat Class: G8 Group 6

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CONTENTS

Executive Summary .......................................................................................................................................................... 3 Introduction and overview of oil prices .......................................................................................................................... 4 Definition and Introduction........................................................................................................................................... 4 Overview of Oil Prices ................................................................................................................................................... 4 Oil Prospect for 2012 ..................................................................................................................................................... 5 Oil Trading ........................................................................................................................................................................ 5 Benefits of Oil Trading ................................................................................................................................................... 5 Risks of Oil Trading ........................................................................................................................................................ 5 Objectives of Oil Trading ............................................................................................................................................... 6 Hedging.......................................................................................................................................................................... 6 The Airline...