Answer:
B. The hedge is asymmetric.
Explanation:
Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.
For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.
Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.
Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.
Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.
<h2><u>Answer:</u></h2>
Equal Units; Assigning Costs—Weighted-Average Method [LO2, LO3, LO4, LO5] The WireOne Company makes high caliber covered electrical wire in two offices, Weaving and Coating. Materials are presented at different focuses amid work in the Weaving Department.
After the weaving is finished, the materials are moved into the Coating Department, where strength plastic covering is connected. Chosen information identifying with the Weaving Department amid May are given underneath:
The organization utilizes the weighted-normal strategy. Required: 1. Figure the proportional units of creation. 2. Register the expenses per proportional unit for May. 3. Decide the expense of completion work in procedure stock and of the units exchanged to the Coating Department. 4. Set up a cost compromise between the costs decided in (3) above and the expense of starting stock and expenses included amid the period.
The product life cycle (PLC) has 5 stages: product development stage, introduction stage, growth stage, maturity stage and decline stage.<span>
The strategy that includes shifting some advertising from building product awareness to building product conviction and purchase is part of the growth stage of the product life cycle. I</span><span>f the new product satisfies the market, it enters this growth stage. In the growth stage the sales will start climbing quickly.</span>
Answer:
D- participate
Explanation:
leaders who have participate leadership skill or style allow their employees take part in decision making making the leader open to many possibilities and ideas.
Answer:
The quantity is likely to decrease, the change in price depends on the extent of change in demand and supply.
Explanation:
The fear of the mad cow disease lead to a reduction in the demand for beef. This caused the demand curve to move to the left.
At the same time, destruction of cattle heads ordered by the government lead to a reduction in the supply of beef. This caused the supply curve to move to the left.
This leftward shift in both demand as well as supply curve will lead to a reduction in the equilibrium quantity of beef.
The change in price of beef depends upon the extent of change in demand and supply. If both decrease by the same extent, the price will remain the same.
