This lesson begins with a discussion of commodities and the concepts of hedging and future contracts. Students think about the reasons that companies might hedge for commodity prices or why they might not. Students read relevant excerpts form Knowledge@Wharton and Knowledge@Wharton High School articles and compute the potential savings and losses as a result of hedging for commodity prices. Finally, students discuss the implications of commodity trading and hedging.

NBEA Standard(s):
  • Computation, I. Mathematical Foundations
  • Computation, II. Number Relationships and Operations
  • Computation, III. Patterns, Functions, and Algebra
  • Computation, VI. Problem-Solving Applications

Lesson Plan Details:

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