An airlines company is unlikely to use the following derivative for risk management:

Question

Quizplus · Accepted Answer

An airlines company is not exposed to credit risk in the same way a financial institution would be, and so would never use a credit default swap for risk management. The other derivatives listed - commodity swap, interest rate swap, oil futures contract, and option on oil futures contract - all relate to risks commonly faced by airlines, such as fuel price risk and interest rate risk.

An Airlines Company Is Unlikely to Use the Following Derivative