Research on the Strategy of Using Option Hedging by China Eastern Airlines

In recent years, with the increasingly fierce competition between major enterprises, under the tide of globalization and informatization, hedging strategy has become an important tool for enterprises to avoid risks. This article introduces and analyzes how China Eastern Airlines uses the hedging strategy to study this strategy. Through the in-depth analysis of the theoretical basis of hedging, it provides theoretical support for follow-up research. Subsequently, through a detailed analysis of the option hedging strategy of China Eastern Airlines Transportation Co., Ltd., its operation and effect are discussed. Finally, the research results are summarized and the future development of enterprises is prospected. Through objective analysis, this paper reveals that options hedging can successfully reduce the operating costs of enterprises, improve the profit level, reduce the capital risks faced by enterprises in the turbulent economic environment, and provide a guarantee for the sustainable development of enterprises.