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elena55 [62]
3 years ago
14

Farmer Jones raises several hundred acres of corn and would suffer a significant loss should the price of corn decline at harves

t time. Which one of the following would he be doing if he purchased financial securities to offset this price risk?A. abatingB. derivingC. hedgingD. forwardingE. manipulating
Business
1 answer:
evablogger [386]3 years ago
7 0

Answer:

The correct answer is C. hedging.

Explanation:

Coverage, in finance, is the set of operations aimed at canceling or reducing the risk of a financial asset or liability in the possession of a company or an individual. Funds created for this purpose are called hedge funds.

The hedging operations consist of the acquisition or sale of a financial asset that is correlated with the element on which the coverage is to be established. Said acquisition or sale may be of shares, indices, interest rates, options, futures, etc.

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insens350 [35]

Answer:

a. Mr Smith's orange business because it's a small fraction of the economy

3 0
3 years ago
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.6 percent, a YTM of 7.6 percent, and has 13
koban [17]

Answer:Hi

Explanation:Hi

3 0
3 years ago
For my business Beauty Essentials would writing personalized thank you cards be better for each customer or should I just write
alexdok [17]

Answer:

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4 0
3 years ago
Dagnon Corporation uses direct labor-hours in its predetermined overhead rate, At the beginning of the year, the total estimated
xenn [34]

Answer:

a) $17.70

Explanation:

The computation of the predetermined overhead rate is shown below:

But before that we need to do the following calculations

Applied manufacturing overheads is

= $13,850 + $294,130

= $307,980

And,

Applied manufacturing overheads is

= predetermined overhead rate × Actual direct labor hours

Hence predetermined overhead rate is

= $307,980 ÷ 174,00 hours  

= $17.70

Therefore, the correct option is d. $17.70

3 0
3 years ago
A student deposits $1,642 in the bank that pays 6.2% interest yearly (using yearly compounding). After 5 years he withdraws the
tamaranim1 [39]

Answer:

the perpetuity will pay the student 166.36 dollar per years

Explanation:

First, we solve for the amount of the original investment after 5 years:

Principal \: (1+ r)^{time} = Amount

Principal 1,642.00

time 5.00

rate 0.06200

1642 \: (1+ 0.062)^{5} = Amount

Amount 2,218.17

<u>Then, this goes into a perpetual annuity at 7.5%</u>

2,218.17 x 0.075 = 166.3630983 = 166.36

the perpetuity will pay the student 166.36 dollar per years

6 0
4 years ago
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