discuss and compare hedging transaction exposure using the forward contract versus money market instruments. when do alternative hedging approaches produce the same result?

Answers

Answer 1

Hedging transaction exposure using forward contracts involves entering into an agreement to buy or sell a specific currency at a predetermined exchange rate on a future date.

This locks in the exchange rate and mitigates the risk of currency fluctuations. Money market instruments, on the other hand, involve borrowing or lending in different currencies to create a synthetic hedge. This is achieved by matching the cash flows of the exposed position with cash flows from the money market transactions.

Both hedging approaches produce the same result when the forward exchange rate is equal to the implied rate obtained from the money market instruments. This occurs when interest rate parity holds, meaning the difference in interest rates between the two currencies is equal to the difference in forward and spot exchange rates. In such a situation, both hedging methods provide similar protection against transaction exposure.

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Related Questions

How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

China is the #1 producer of wheat; however, the United
States also produces wheat.
What reason(s) might the U.S. have to sell its own wheat as
well as wheat produced in China?

Answers

Economically speaking, where China is the Number 1 producer of wheat and the United States also produces wheat, the U.S. may sell both Chinese and American-produced wheat to meet demand and diversify sources of supply.

What is Supply in Economics?

Supply in economics refers to the quantity of a resource that businesses, producers, laborers, financial asset providers, or other economic actors are willing and able to deliver to the market or to an individual. Supply can be in the form of manufactured items, labor time, raw resources, or any other rare or valued item.

Economic variety or economic diversification refers to changes in a region's or country's economic position or utilization of a diverse range of economic activities.

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What is a public good?

A A public good is a product or service that one consumer can prevent another consumer from using, and is not accessible without
payment

B A public good is a product or service that one consumer cannot present another consumer from using, and is accessible without
payment

C A public good is a product or service that one consumer cannot prevent another consumer from using, and is not accessible without
payment

D A public good is a product or service that one consumer can prevent another consumer from using, and is accessible without payment.

Answers

I believe your answer is B

A public good is a product or service that one consumer cannot present another consumer from using, and is accessible without  payment

45 points, please help.
Business #1 Information: Month - March
Business Name - ABC Rentals
Asset accounts and balances:
1. Cash $14,000
2. Party Equipment $26,000
3. Supplies $10000
Liability accounts and balances:
1. Accounts Payable - Party Zone $20,000
2. Accounts Payable - Party Town $14,000
Owner's Equity account and balance:
1. Emily Violante, Captial $16,000

Instructions: Complete the balance sheet for ABC Rentals by recording account titles and amounts to determine if the equation Total Assets = Total Liabilities + Owner's Equity is correct.

Answers

The total of the assets in a balance sheet is equal to the summation of the owners' equity capital and the total liabilities of the firm.

What is a balance sheet?

Balance sheet is the financial statement of an organization that gives the details about the financial position of the company at the end of the financial period.

In the above case, the total of the assets is $50000 and the total of the equities and liabilities tallies the amount of assets. An image for the same has been attached for better reference.

Thus, the equation of the balance sheet holds true in the case of ABC Rentals.

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45 points, please help.Business #1 Information: Month - MarchBusiness Name - ABC RentalsAsset accounts

Describe the mission value statement of the prospective employer. discuss how it aligns or does not align with your own beliefs and values. Print and submit a copy of the employer mission statement along with you assignment and use APA referencing style to indicate your source(s). Develop a personal mission statement that describes your beliefs, values, interests and career goals(short and long term)as a HCA

Answers

The mission value statement of the prospective employer aligns with my beliefs and values. It emphasizes providing high-quality healthcare services, promoting patient-centered care, and fostering a collaborative and compassionate work environment.

The mission value statement of the prospective employer, as mentioned, reflects a commitment to delivering high-quality healthcare services and prioritizing patient-centered care. This aligns with my own beliefs and values as a healthcare professional. I believe in the importance of providing excellent care that meets the needs and preferences of patients, ensuring their well-being and satisfaction.

Additionally, the employer's mission statement emphasizes fostering a collaborative and compassionate work environment. This resonates with my values as I believe in teamwork, open communication, and supporting colleagues to provide the best possible care. A compassionate work environment promotes empathy, understanding, and kindness towards both patients and fellow healthcare professionals.

In developing my personal mission statement, I would focus on my beliefs, values, interests, and career goals as a healthcare administrator (HCA). My mission statement would encompass my dedication to improving healthcare delivery, optimizing operational efficiency, and enhancing patient outcomes. It would reflect my commitment to ethical leadership, promoting innovation, and fostering a culture of continuous improvement. In the short term, I aim to gain practical experience and expand my knowledge in healthcare administration. In the long term, my goal is to lead healthcare organizations, implementing strategic initiatives to enhance healthcare quality, accessibility, and affordability for all individuals in need.

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What type of resume is suitable for people who are just entering the workforce?.

Answers

For those who are just entering the workforce, a functional or skills-based resume may be more suitable than a traditional chronological resume.

This type of resume focuses on skills, abilities, and accomplishments rather than work experience. It highlights transferable skills and achievements from academic, extracurricular, and volunteer activities that are relevant to the job being applied for. This type of resume can be effective for those with little to no work experience or those changing careers. However, it is important to note that some employers may prefer a chronological resume, so it is important to research and understand the job requirements and company culture before deciding on a resume format. Additionally, it is important to customize the resume for each job application and to highlight relevant skills and experiences that match the job description.

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What does the 4 Ps mean in marketing?

Answers

Answer:

4 Ps mean in marketing is product ,promtion,place,and price

Explanation:

Which of the following is an output device? DVD-ROM Touchpad Hard drive Printer

Answers

The printer should be considered an output device.

The following information should be considered for an output device:

The output device is the device that transforms the information into a human-readable form. The example of the output devices includes monitor, printer, plotters, speakers, etc.

Therefore we can conclude that the printer should be considered an output device.

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Which of the following are examples of lifelong learning?
A. lifestyle
B. reading
C. sacrifice
D. salary

Answers

Answer:

the answer is reading

Explanation:

The correct option is B. Reading is an example of lifelong learning.

This fosters cognitive growth and may prevent cognitive deficits in memory and focus brought on by aging, such as dementia.

Why reading is the key to success?

It is a powerful motivator for someone to improve in life. The more a person reads, the better his comprehension and understanding skills get. The more proficient a reader he is, the simpler it will be for him to do a task. The development of a reading habit and knowledge are related.

Reading broadens your vocabulary and boosts your concentration, memory, and self-esteem. But it also aids in stress relief and hepatization, two traits that can guarantee your academic success.

Thus, Every time a reader turns a page, they continue to learn something new. New and intriguing ideas are presented to readers on a regular basis.

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examples of frictional force

Answers

Explanation:

I hope this would be the right answer....
examples of frictional force

The country in which an International company has its primary headquarters and the larger consumer base is called its
trading country
economic country
host country
home country

Answers

I feel that economic would be the one that makes sense to me could be wrong though hope this helps

please help me ive been stuck on this problem :( ((update i solved it))

please help me ive been stuck on this problem :( ((update i solved it))

Answers

The return on equity that Pam would have is going to be 10 percent.

What is meant by Return on Equity?

Return on equity (ROE) is a financial ratio that measures the profitability of a company in relation to the amount of equity invested by shareholders. It is calculated by dividing net income by shareholder equity.

A higher ROE indicates that a company is generating a higher return on the investment made by its shareholders. It is commonly used to measure a company's efficiency at generating profits from shareholders' equity.

The formula is given as

net income / shareholders equity * 100

= 100 / 1000 * 100

= 0.1 * 100

= 10%

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When economists determine that a nation’s GDP has declined, they can point to this as a sign of

economic shrinkage.

economic growth.

low unemployment.

poor leadership.

Answers

Answer:

ANSWER: Economic Shrinkage

Explanation:

When Economists determine that a nation’s GDP has declined, they declared that this is a sign of Economic Shrinkage.

This is because Economic Shrinkage is a term that described a decrease or reduction in the level of a country or nation's GDP.

This implies that the level of economic and development growth rate of a specific nation under measure has declined.

A reduction in the GDP of a nation affects the production level, the consumers, and the investors.

Hence, in this case, the correct answer is option A "Economic shrinkage."

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The long run is a planning period: a. less than one year. b. during which the firm can vary all inputs including its plant size. c. less than five years. d. less than six months.

Answers

The long run is a planning period during which the firm can vary all inputs including its plant size.

A company can regard all inputs as variables over the long term when planning. There is a time frame known as the long run during which all cost and production elements are erratic. Firms can alter all costs over the long term, but in the near term, they can only affect pricing by changing their production levels. A company may also anticipate challenge in the long run, even though it may currently have a dominance in the near term.

A long run is a period of time when a producer or manufacturer may be flexible with its manufacturing choices. On the basis of anticipated earnings, businesses can either increase or decrease their production capacity, or enter or leave a certain industry.

Option B is the correct answer.

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Dont worry about me, I just added this answer so the other person can get their brainliest because they definetly deserve it

Answers

HI HI HI HI HI HI HI HI WATER IS H20

What? Are you ok buddy

What Is NOT one of the three primary resources that farnilies have to reach financlal goals?

A.Education
B.Energy
C.Time
D.Money

Answers

Answer:

I think it would be education

Explanation:

Answer: A. Education

Explanation:

What do you mean by levels of professions?​

Answers

Answer:

The word “profession” means different things to different people. But at its core, it’s meant to be an indicator of trust and expertise.

Traditionally, a “professional” was someone who derived their income from their expertise or specific talents, as opposed to a hobbyist or amateur. This still carries through to fields today, such as sport.

But given today’s fast-changing environment of knowledge and expertise, it’s now generally understood that simply deriving an income from a particular task might make you an “expert” or “good at your job” – but if you’re a “professional”, this has a broader meaning.

There’s a long history of attempts to clarify this meaning, and to define the functions of professions. These attempts typically centralise around some sort of moral or ethical foundation within the practice of a specific and usually established expertise.

This section is designed to give you an insight into some of the historic and academic ways of defining professions, as well as some regulatory perspectives as to how a group can ultimately become a profession.

Initially, the exchange rate between Lebanon and Mexico is in equilibrium. Now, assume that there is a decrease in demand for Mexican pesos.
As a result of this change, what will happen to Mexican pesos?
an appreciation
a depreciation
no change
Furthermore, a decrease in demand for Mexican pesos also results in winners and losers for various groups that are affected by the foreign exchange market. For the group in each example, indicate whether it is a winner or a loser in this change.
____ a tourist from Lebanon going on vacation to Mexico.
____ a mutual fund in Lebanon that purchases bonds in Mexico.
____ a family from Mexico visiting relatives in Lebanon.
____ a small firm in Mexico that sells DoDads in Lebanon.
____ a large firm in Lebanon selling chemicals in Mexico.
____ a multinational based in Mexico purchasing land in Lebanon.

Answers

As a result of the decrease in demand for Mexican pesos, the Mexican pesos will depreciate.

When there is a decrease in demand for a currency, its value tends to decrease, resulting in depreciation. In this case, since the demand for Mexican pesos has decreased, the value of the pesos will decline in relation to other currencies, such as the Lebanese pound.

Now, let's analyze the winners and losers in each example:

A tourist from Lebanon going on vacation to Mexico: Winner

A decrease in the demand for Mexican pesos means the Lebanese pound can buy more pesos. Therefore, a Lebanese tourist going to Mexico will benefit from the depreciation of the Mexican peso, as they will get more pesos for their Lebanese pounds.

A mutual fund in Lebanon that purchases bonds in Mexico: Loser

If the mutual fund in Lebanon purchases bonds denominated in Mexican pesos, the decrease in demand for pesos will result in a depreciation. Consequently, the value of the bonds in terms of Lebanese pounds will decrease, making the mutual fund a loser in this scenario.

A family from Mexico visiting relatives in Lebanon: Loser

With the depreciation of the Mexican peso, the value of the peso decreases relative to the Lebanese pound. Therefore, the family from Mexico will need to spend more pesos to get the same amount of Lebanese pounds, making them a loser in this situation.

A small firm in Mexico that sells DoDads in Lebanon: Winner

The small firm in Mexico will benefit from the depreciation of the Mexican peso. As the peso weakens, the firm's exports to Lebanon will become more affordable and competitive, potentially increasing demand for their products and making them a winner.

A large firm in Lebanon selling chemicals in Mexico: Loser

The large firm in Lebanon will face a disadvantage due to the depreciation of the Mexican peso. The weaker peso means that the firm will receive fewer pesos for the same amount of Lebanese pounds when selling their chemicals, potentially reducing their profitability.

A multinational based in Mexico purchasing land in Lebanon: Winner

The multinational based in Mexico will benefit from the depreciation of the Mexican peso when purchasing land in Lebanon. They will require fewer pesos to buy the same amount of land in Lebanese pounds, making them a winner in this case.

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What could you do to make sure a new employee you hired complies will all applicable rules, laws, and regulations related to their position? Give at least two examples of policies, practices, or procedures that would help.

Answers

Answer:

Explanation:

Policies should provide good guidelines and expectations to ensure fair and consistent ... If there is a need for government laws and regulations compliance (e.g., the ... For example, "All employees will be subject to this new policy/revision as of [date].

Anna got a high-paying job as a lab technician upon graduation. She took
five years to graduate from a public university and did take out a lot of
loans. What kind of return on investment (ROI) does Anna demonstrate?
Can't determine ROI
Negative ROI
Positive ROI
ОО
Neutral ROI

Answers

Answer:

Positive ROI

Explanation:

A positive ROI or positive rate of return occurs when the benefits realized from a project are much more than the costs incurred.  Positive implies that a net effect of a number greater than zero.

Anna did not incur a lot of debts while in college. It suggests she controlled her expenses well. Since Anna has a well-paying job, her income and the cost incurred in college compare favorable. Her benefits are more compared to the cost of education.

B- The return on investments (ROI) that Anna should demonstrate is a positive Return on Investment (ROI). This is due to the excess loans taken by Anna during her education before getting the job.

Anna needs to maintain a hefty savings and needs to pay her liabilities in the forms of loans first because she is under obligation of the lending authority to pay for her education loan along with interest accrued.

Anna will not end up saving for herself and her needs if she is unable to save the money after paying her dues towards her loan. She has to make sure a healthy return on investments made by her.

Usually an education loan is an expensive loan with higher rates of interests charged by the bank due to shortage of jobs in the economy due to unemployment flair and hence avoiding the risk associated.

If her interest rate of loan is around 8% she has to make sure her salary is saving her way more than this loan amount with interest which will be due periodically.

Hence, option B is correct that Anna will have to maintain and demonstrate a positive return on investments followed by her high paying job.

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If you know a brand so well that you use its trademark name to describe all similar products, you are
exhibiting...
A. Brand Awareness
B. Brand Loyalty
C. Promotion Awareness
D. Promotion Susceptibility

Answers

Answer:

I think It's A. and C. or D. but I really think it's D. actually .

in june, talon company made 4,500 units of its product. talon uses a standard cost system and applies overhead cost based on direct labor hours. standard: - dlh per unit 2 variable overhead per dlh $2.15 fixed overhead per dlh $3.10 budgeted variable overhead $21,875 budgeted fixed overhead $38,750 - - actual: - direct labor hours 10,000 variable overhead $19,750 fixed overhead $38,000 refer to talon company. using the four-variance approach, what is the variable overhead spending variance?

Answers

The variable overhead spending variance is -$1750.

To calculate the variable overhead spending variance:

1. Find the actual variable overhead rate per direct labor hour (DLH):
Actual variable overhead / Actual DLHs = $19,750 / 10,000 DLHs = $1.975 per DLH

2. Find the standard variable overhead rate per DLH:
According to the given information, the standard variable overhead rate is $2.15 per DLH.

3. Find the difference between the actual and standard variable overhead rates:
Difference = Actual variable overhead rate - Standard variable overhead rate = $1.975 - $2.15 = -$0.175 per DLH

4. Calculate the variable overhead spending variance:
Variable overhead spending variance = Difference x Actual DLHs = -$0.175 x 10,000 = -$1,750

So, using the four-variance approach, the variable overhead spending variance for Talon Company in June is -$1,750.

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Which person would most benefit from homeowners insurance?
A) Hilary lives in an apartment with few personal possessions.
B) Karim lives in a dorm
C) Michael and Bryce have a 30-year mortgage.
D) Fran lives in an assisted living facility

Answers

The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

What is insurance?

Insurance can be described as the way of  managing your risk when someone subscribe to  insurance,  then the  protection against unexpected financial losses is been gotten.

Hence, The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

Therefore , option D is correct.

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Answer:

Fran lives in an assisted living facility

Explanation:


Which of the following is not an example of professional behavior
?

Answers

What are the answers?

The set of skills and knowledge needed to make informed decisions about
money matters is called financial literacy.
A. True
B. False

Answers

True
I’m pretty sure

What can give working people information about their fields, including conferences and leadership opportunities in those fields?

an extracurricular activity
a career and technical student organization
a professional organization
a cocurricular activity

Answers

Answer:

a professional organization

Explanation:

A professional organization is formed to promote the growth of the profession and advance the interest of people working in that profession.

A professional organization is also known as a professional association. It facilitates communication and connection among its professionals. It supports innovations and creativity that help develop and grow the profession. Through their regular meeting, members of a profession share information on the trending issues, opportunities, and challenges affecting the profession.

Answer:

C

Explanation:

The Monarch Division of Allgood Corporation has a current ROI of 13 percent. The company target ROI is 9 percent. The Monarch Division has an opportunity to invest $5,700,000 at 11 percent but is reluctant to do so because its ROI will fall to 12.24 percent. The present investment base for the division is $9,300,000. Required Calculate the current residual income and the residual income with the new investment opportunity being included. Based on your answers to requirement a, should Monarch Division make the investment?



Calculate the current residual income and the residual income with the new investment opportunity being included.



Based on your answers to requirement a, should Monarch Division make the investment?

Answers

Answer and Explanation:

The computation is shown below:

Current residual Income is

= current investment base × (Current ROI - Target ROI)

= $9,300,000 × (13% - 9%)

= $9,300,000 × 4%

= $372,000

Now

New residual income is

= (New investment base) × (New ROI - target ROI)

= ($9,300,000 + $5,700,000) × (12.24% - 9%)

= $15,000,000 × 3.24%

= $486,000

Yes, Monarch division should make the investment because the new residual income is more than the present residual income

A new firm successfully enters a three-firm cournot oligopoly without changing the demand and cost structures. the new price becomes multiple choice 75 percent of the original price. 50 percent of the original price. unknown for lack of other information. the same as the original price.

Answers

The new price of the goods will be unknown as there is a lack of other information. Hence, Option C is the correct answer.

What is an oligopoly market?

An oligopoly market can be defined as a market in which the marketplace is dominated by few sellers or producers, for example., the automobile industry or aircraft industry.

The competition in such a market is dependent upon the number of sellers or producers.

Hence,The new price of the goods will be unknown as there is a lack of other information.  Option C is the correct answer.

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Under the allowance method for estimating uncollectible accounts, the entry to write off an account:

Answers

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DEBIT TO ALLOWANCE for Doubtful Accounts and a credit to Accounts Receivable.

===========================================

When a specific customer's account is identified as uncollectible, it is written off against the balance in the allowance for bad debts account.

HOPE IT HELP

STAY SAFE

STUDY HARD

\(\large\rm\color{Brown}Answer:\)

Debit to allowance for Doubtful Accounts and a credit to Accounts Receivable.

PLEASE HELP! IF YOU CAN'T ANSWER ALL OF THE QUESTIONS, PLEASE JUST GIVE ME AS MUCH AS YOU CAN! THANK YOUUUU

1. How can a business use its customer profile to meet the objective of increasing sales?

2. Explain why a business may decide to increase its product mix.

3. Define ‘customer profile’ and explain two elements that might be useful in creating a customer profile.

4. ‘Any business that fails to conduct a sales analysis will be unable to assess the success of its marketing strategies.’ Discuss.

5. A business has a sales forecast of $90000 but achieves actual sales of only $25000. What does this signify? What should the business do next?

6. Darren runs a garden maintenance business and has carried out a marketing campaign in his own and neighbouring suburbs. Explain how each of the following may help him evaluate the success of that campaign:
a. sales analysis b. market share analysis c. marketing profitability analysis

Answers

Answer:

1. Customer profile is used to increase sales by keeping their demand in mind. Customer traits and requirements are important and used a target for increasing sales.

2. Profitability is the main reason when a  company is increasing its product mix.

3. Understand your product, take feedback from customer, observe customer typology.

Explanation:

4. The sales analysis is very important for any business. It is important to forecast sales based on demands of customers to ensure sufficient supply of products.

5. Inaccurate sales forecasting leads to decline sales. The company has foretasted $90,000 but in actual it was only able to make up $25,000 of sales. This may be due to some unavoidable circumstances but during forecast such events and seasonal effects should be considered.

6.

Sales analysis is an important factor which helps any organization to meet market demands.

Market share analysis helps the organization to identify where it stands out among its competitors.

Marketing profitability analysis is a process which helps a company to design such marketing strategies which will help to boost its profitability.

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