The hedge is effective in that (i) economic relationship exists between the hedging item and hedged item, (ii) the effect of credit risk does not dominate the value changes, and (iii) the hedge ratio is the same as that arising from quantity of hedged instrument to the quantity of hedging instrument.
举一反三
- Hedging is the act of balancing your assets and liabilities in a foreign currency to become immune to risk resulting from future changes in the value of foreign currency.（ ）
- Maintaining a<br/>delta-neutral portfolio is an example of which of the following ( <br/>) A: Stop-loss<br/>strategy B: Dynamic hedging C: Hedge and forget<br/>strategy D: Static hedging
- Which of the following might motivate keeping a high level of inventory A: decreasing variability in demand B: high risk of product obsolescence C: item cost that does not change depending on order quantity D: a complex setup process when switching between production of two different products
- Factory overhead can be absorbed by which of the following methods? (i) Machine hours (ii) direct labor hours (iii) unit quantity (ii) (iv) as a percentage of direct labor cost A: (i) ,(ii) ,(iii), (iv) B: Only (i) & (ii) C: Only (ii) & (iii) D: only (i) ,(ii) & (iii)
- A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a _________