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.
Answer: the correct answer is D) $250,000
Explanation:
Answers
transactions relating to stockholder's equity
Issued shares 10,000* $7 = $70,000
Issued shares 20,000*$8 = $160,000
net income = $100,000
--------------
Sub Total $330,000
Debts
50,000 dividend ($50,000)
3,000 *$10 treasury stock ($30,000)
--------------
Sub Total ($80,000)
Total $330,000-$80,000 = $250,000
Answer:
False
Explanation:
In the given question it is mentioned that the employees earned vacation pay of $35,000 during the first year of the operation.
Hence,
the expenses should be recorded as the vacation pay expenses in the same year not in the following year i.e the second year whether the employees take the vacation in the same year or the next year.
If you mean like anY kind of example of flame, a lighter flame is a good example.
Anything that uses gas to emit a flame
Answer:
D ; increase growth
Explanation:
The discount rate is one of the tools that the Federal Reserve uses to direct monetary policy. Banks are subject to minimum reserves requirements. If a bank falls below this minimum, it can borrow from the banks with a surplus, or borrow from the federal reserve. If it borrows from the Fed, the interest rate that applies is the discount rate. The discount rate is always higher than the fed fund rate; hence, banks use it as a last resort.
The discount rate and the fed rate have similar effects on the economy. The Fed uses the discount rate to regulate the money supply in the country. When the growth in slow, the fed will reduce the discount rate. A low discount rate means the cost of borrowing money goes down. The impact is that individuals and businesses will afford to borrow money for consumption and investment.
Increased levels of investments and consumption will mean a higher GDP, which is growth.
