give 2 examples of real life application of hedging.

Answers

Answer 1

Hedging is a strategy used by businesses and investors to reduce risks associated with fluctuations in market prices. There are many real-life applications of hedging, and two examples of real-life application of hedging include the following: Examples of real-life application of hedging are:

Agricultural commodities: Farmers who grow crops such as corn, wheat, and soybeans use hedging to reduce the risks associated with price volatility in the market. A farmer can use hedging to protect the crop from a fall in market prices by selling a futures contract on the commodity. For example, if a farmer expects to harvest 10,000 bushels of corn, he can sell a futures contract for 10,000 bushels of corn to protect himself from a fall in market prices. If the price of corn falls, the farmer will still be able to sell his crop at the price agreed upon in the futures contract. This helps the farmer to avoid losses associated with a decline in market prices.

Currency risks: A company that exports goods to another country can use hedging to reduce the risks associated with currency fluctuations. For example, if a US company exports goods to Japan and expects to receive payment in yen, it can use hedging to reduce the risks associated with a decline in the value of the yen. The company can use a currency swap to exchange yen for dollars at a fixed exchange rate. This will help the company to avoid losses associated with a decline in the value of the yen.

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Related Questions

WILL MARK BEST ANSWER BRAINLIEST

Write a professional email using the following scenario:
The manager is going to a conference in another city. She would like her assistant to book the flight and hotel.

Answers

A professional email based on the given scenario would sound like the following:

To: Assistant

From: Manager

Subject: Flight and Hotel Booking for Chicago

Date: January 28, 2022

Hi,

Please book my flight and hotel reservations for the upcoming conference in Chicago from February 7, 8:00 am to February 11, 2022 (5:00 pm).

Do not forget the company's favorite airline and hotel for the bookings.

Regards,

Tony

Thus, while the email sounds professional, it may be more conversational than formal since it is a workplace request.

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WARM UP: If a person dies in cold weather, does that increase or decrease rigor mortis? What about Warm weather?​

Answers

Answer:

cold weather:decrease rigor mortis  warm weather: increase

Explanation:

Ambient temperature: Warm conditions speed up the onset and pace of rigor mortis by providing a hospitable environment for the bacteria and processes that cause decay. Cold temperatures, on the other hand, slow it down. If someone dies outside in freezing temperatures, rigor mortis can last for days.

Not only does the surrounding ambient temperature affect the onset of rigor mortis, but the internal temperature of the body at death does as well. Having a high fever at the time of death will accelerate the progression of rigor mortis.

What is an example of a community that you belong to?

Answers

I belong to a community of young moms and we stick together to prove that just because we are mothers doesn’t mean we are unable

suppose that it currently costs 17 mexican pesos to buy one u.s. dollar. with that as the reference point, decide whether each situation corresponds to a price above or below 17 pesos/dollar.

Answers

The price above 17 pesos/dollar for any cost to purchase a U.S. dollar over 17 pesos is the same as the price below 17 pesos/dollar for any cost to purchase a U.S. dollar over 17 pesos.

Although most shops will accept U.S. dollars, it is preferable to exchange your money for pesos. It is the Mexican money, and you'll get greater deals. Many people obtain pesos from their own bank before traveling.

The currency of the Philippines and several other nations in the Americas is the peso. Peso, which means "weight" in Spanish, has its roots in the Spanish Empire.

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Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his Net income Property tax Income tax Gross income

Answers

Mr. Johnson received $1,750 on his paycheck for two weeks.The amount he had left is defined as Net income.

Option A is correct.

How does net profit compare to net income?

Simply put, profit is the revenue that remains after expenses are deducted; Depending on the types of costs that are deducted from revenue, it exists on multiple levels. A single number, net income—also known as net profit—represents a particular kind of profit. The well-known bottom line on a financial statement is net income.

How is net income figured out?

The gross salary less any deductions, such as professional tax, pension, income tax, etc., is the net salary. whereas gross includes all benefits like a medical allowance, a transportation allowance, and a house rent allowance, among others

Question incomplete:

Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his

A. Net income

B. Property tax

C.  Income tax

D. Gross income

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What is an appropriate response when an interviewer asks what salary you are looking for
during your initial interview? Would the response change if you'd been given an offer?

Answers

Thank you I will gladly take the offer

1. Why is career education so important for teens?

Answers

Because in the future it will help you decide what you want to do

19) Which is the last step of a cost-benefit analysis?

A) Determine the costs of the decision.

B) Calculate the amount of benefits for each option.

C) Determine what the options are.

D) See if the benefits outweigh the costs.

Answers

Answer:

last step of cost-benefit analysis is the to see if the benefits outweigh the costs.

EXPLANATION:

Benefits should be documented and classified after identifying costs.  Benefits that are identified should be monetized or associated with a value. Similar to costs, external and internal benefits to the organization should be documented.

Explicit benefits : They can be quantified (e.g.,  reduced costs or additional value)

Implicit benefits : They are difficult to quantify (e.g., satisfaction levels, increased retention or access/utilization to services or programs)

Typically, during this step, various calculations can be completed that can result in values or ratios that would be compared.

1.Return on investment

2.NPV(net present value)

3.Discount rates

4.Benefit-cost analysis

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1. what role do first-line managers perform? a. implement policies made by top managers. b. create organizational strategies and goals.

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a. Implement policies made by top managers.

First-line managers are the entry-level managers who are responsible for managing the day-to-day operations of a department or a team. They typically have the closest contact with front-line employees and are responsible for ensuring that tasks are completed efficiently and effectively.

The primary role of first-line managers is to implement policies and procedures that are established by top-level managers. They are responsible for ensuring that their team understands and follows these policies and procedures, and for making any necessary adjustments to ensure that work is completed efficiently and effectively.

First-line managers play a crucial role in implementing the policies and procedures set by top-level managers. They are responsible for managing the day-to-day operations of a department or a team and ensuring that tasks are completed efficiently and effectively.

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3. Not all the busines contracts
are legal. Justify.​

Answers

Answer:

They could be scams wanting money out of you. It is simple as that they can act as a business but they aren't. To be honest with you you are your own business because whatever you do is good or well so you don't need approval on others so my answer is scammers cause other businesses are working hard to make money and respect their customers!

can someone help with this?

can someone help with this?

Answers

Answer:

profit

Explanation:

Answer:

profit

Explanation:

if we want to model a random stock price, we should do so with an unbounded symmetric probability distribution.

Answers

Yes, an unbounded symmetric probability distribution is the best option for modeling a random stock price. This type of probability distribution can generate a wide range of outcomes that could represent the volatility of the stock market.

To model a random stock price with an unbounded symmetric probability distribution, you can use the following steps:


1. Calculate the expected return for the stock.
2. Calculate the variance of the stock’s returns.
3. Generate a random variable that follows an unbounded symmetric probability distribution.
4. Scale the random variable to the expected return and variance of the stock.
5. Simulate the stock's price using the random variable.

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​(Bond valuation​ relationships) The 15​-year, ​$1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ​$945​, and the​ market's required yield to maturity on a​ comparable-risk bond is 7 percent.
a. Compute the​ bond's yield to maturity.
b. Determine the value of the bond to you given the​ market's required yield to maturity on a​ comparable-risk bond.
c. Should you purchase the​ bond?

Answers

Where the above conditions are given,

a. The Bond's Yield to maturity is approximately 8.5%.

b. The bond's value is higher than $945.

c. Yes, you should purchase the bond.

What is the explanation for this ?

Using the formula

Bond Price = (Coupon Payment / YTM) * (1 - (1 / (1 + YTM)^n)) + (Par Value / (1 + YTM)^n)

Where -

Coupon Payment = Annual interest payment = 8% of $1,000 = $80

YTM = Yield to Maturity (unknown)

n = Number of years to maturity = 15

Par Value = $1,000

Plugging in the values we have

$945 = ($80 / YTM) x  (1 - (1 / (1 + YTM) ¹⁵) ) + ($1,000 / (1 + YTM)¹⁵)

YTM = 8.5%

b)  If the market's required yield to maturity on a comparable-risk bond is 7%, and the bond's yield to maturity is 8.5%, it suggests that the bond's yield is higher than the market's required yield of $945

c)  Based on the given information, the bond's yield to maturity (8.5%) is higher than the market's required yield (7%), indicating that the bond is undervalued, hence is okay to be purchased.

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fill in the blank question.the accounting information needs of internal stakeholders, such as managers and other employees is provided by

Answers

Management accounting meets the internal stakeholders' demands for accounting information, including managers and other staff.

What are some examples of stakeholders?

A stakeholder might be any number of individuals that have an interest in or are affected by the project. A stakeholder, for instance, may be the owner as well as the shareholder. Employees, bondholders, clients, suppliers, and vendors are additional examples of stakeholders. Stakeholders include shareholders.

Who exactly are the stakeholders?

An "person or group that holds an interests in any decision or action of an organization" is what is meant by a stakeholder in accordance with the international standard ISO 26000, which offers guidelines on social responsibility.

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Two similarities of government and business office two similarities

Answers

Two similarities of government and business office two similarities are:

Rules and RegulationsHierarchical Structure

What are the diffrences as well as the similarities?

In term of Hierarchical Structure it can be deduced that government  as well as business offices  can be seen to posses hierarchical structure,  which can be seen to have a command that can influence the authority as well as responsibilities of each level.

In term of Rules and Regulations it can be deduced that government  as well as business offices  do possses some rules  as well as regulations which in the process of governing their operation.

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how saving account fits with my time horizon retirement

Answers

An investment's time horizon is indeed the length of time it will be held before being sold. Choose the best Retirement savings are the most popular long-term investments.

What do you mean by investment?

A purchase made with the intention of creating income or capital growth is known as an investment. Appreciation is the term for an asset's value rising over time. A person buys in a good with the intention of using it to build wealth in the future rather than for current consumption.

How can beginners invest?

Open a Demat and trading account using your linked banking account. Log into that trading account. Select the shares that you wish to buy or sell. Ensure that you have the requisite amount of funds in your account to buy the shares.

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do you like lauge arts it is supper fun in cool

Answers

Answer: It's really confusing. its just mid.

Explanation:

I love it! I find it to be fun, as well as being an essential quality in life. To have good, basic knowledge in language arts, you can never go wrong :)

outline four reasons why ethical practices are necessary in product promotion​

Answers

Answer:

(1) To create positive image/ reputation.

(2) To abide by laws of the country.

(3) To avoid environment pollution/ degradation.

(4) Avoid misleading consumers.

Explanation:

discuss the steps of growing mushrooms
not a too long answer ​

Answers

Answer:

The Pennsylvania State University,

College of Agriculture, Extension Service,

University Park, Pennsylvania

Mushroom farming consists of six steps, and although the divisions are somewhat arbitrary, these steps identify what is needed to form a production system.

The six steps of mushroom farming:

Phase I

1. Composting

Phase II

2. Composting

3. Spawning

4. Casing

5. Pinning

6. Cropping

assume sony uses a periodic inventory system. beginning inventory on january 1 was understated by $30,800, and its ending inventory on december 31 was understated by $15,400. in addition, a purchase of merchandise costing $21,700 was incorrectly recorded as a $2,170 purchase. none of these errors were discovered until the next year. as a result, sony's cost of goods sold for this year was:

Answers

The cost of goods sold for Sony is overstated by $55,930 due to the inventory errors and incorrect recording of purchases.

Beginning inventory understatement by $30,800, ending inventory understatement by $15,400, and incorrect recording of a purchase by $19,530 ($21,700 - $2,170) all result in an overstatement of inventory.

This overstatement of inventory leads to an understatement of cost of goods sold by the same amount, which in this case is $55,930 ($30,800 + $15,400 + $19,530). Therefore, Sony's cost of goods sold for the year is overstated by $55,930 due to the inventory errors and incorrect recording of purchases.

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WHICH OF THESE INDIVIDUALS IS AN ENTREPRENEUR?????????

A. A farmer who sells his crops in many different countries

B. A banker who is in charge of hundreds of accounts

C. An engineer who gets a mortgage to buy a new house

D. A chef who decides to open her own restaurant



WILL GIVE BRAINLIST

Answers

Answer:

The answer is C. Because it brings more profitability to his business

Answer to question is C.

True or False: If a firm is operating in a contestable market, it should operate at the efficient production level and earn negative profit.

Answers

False. In a contestable market, potential entrants are able to enter and exit the market freely, which puts pressure on existing firms to operate at an efficient production level and price their goods or services competitively.

However, there is no reason why a firm operating in a contestable market must earn negative profit.

In fact, a firm in a contestable market could earn positive profit if it is able to differentiate its product or service in a way that is valued by customers, or if it is able to achieve lower costs than its competitors through economies of scale or other means. However, if the firm earns positive profit in the short run, it may attract new entrants to the market, which could eventually lead to lower prices and lower profit margins for all firms in the long run.

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what happens to the APR after 10 months

Answers

Answer: Once your 0% introductory APR period is over, you'll be charged a new interest rate and may even owe interest on any unpaid balance from before.

Explanation:

i think that's what you mean

Products that are distinctive in physical aspects, location, intangible aspects and perceptions in the eyes of the consumer are called products. Select the correct answer below: O homogeneous differentiated O monopolistic O identical

Answers

The correct answer to the question is differentiated products. Differentiated products are those that have unique and distinctive features that set them apart from other similar products in the market, hence option B) is correct.

The correct answer to the question is differentiated products. Differentiated products are those that have unique and distinctive features that set them apart from other similar products in the market. These features could be physical, such as the design, color, size, and shape of the product, or they could be intangible, such as the brand image, reputation, and perceived value of the product. Differentiated products are often created to cater to the diverse needs and preferences of consumers. By offering products that are unique and distinctive, businesses can attract and retain customers who are looking for something specific or special. Moreover, differentiated products can help businesses create a competitive advantage by making it difficult for other businesses to imitate or replicate their products. In contrast, homogeneous or identical products are those that are considered identical or nearly identical by consumers. These products are often sold in a perfect competition market, where businesses have little or no control over the price of the product and must compete based on other factors, such as quality, service, and availability. Monopolistic products, on the other hand, refer to products that are sold by a single supplier or producer with no close substitutes. Monopolies often have a significant market power and can set their prices and output levels without much competition. However, monopolistic products are rare in a competitive market and are often regulated by the government to prevent market abuses. In conclusion, differentiated products are those that are distinctive in physical aspects, location, intangible aspects, and perceptions in the eyes of the consumer. These products offer businesses a competitive advantage and cater to the diverse needs and preferences of consumers. Therefore option B) is correct

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An example of consumer spending when calculating the GDP using the expenditures approach is _____.


rent

purchase of weapons for the military

purchase of software

none of the above

Answers

purchase of weapons for the military

For a restaurant to be able to offer mixed beverages to go, which of the following are true?
A. It must be accompanied with a food order.
B. Beverage must be in a sealed tamper proof container.
C. There is no alcohol/food ratio.
D. All of the above

Answers

All go with all of the above I guess

A restaurant can sell mixed beverages if they fulfill these requirements: A. It must be accompanied by a food order. B. Beverage must be in a sealed tamper-proof container. C. There is no alcohol/food ratio.

What is a Mixed beverage?

A mixed drink, caterer, or special occasion license holder must provide or sell one or more portions of a beverage made all or portion of an alcoholic drink in a sealed or unopened container of any permitted capacity for personal consumption were served or sold.

Any restaurant in this business must fulfill all the conditions to be able to sell mixed beverages as requested by the legal authorities.

Hence, the correct option is D. All of the above.

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Joseph is trying to select a new couch for his living room. As he looks at each couch at the furniture store, he tries to visualize how it would look in his living room at home. Joseph is using _____ to help him determine which couch to buy

Answers

Joseph is using visualization to help him determine which couch to buy.

Joseph's process of visualization plays a crucial role in helping him determine which couch to buy for his living room. As he explores each couch at the furniture store, he actively engages his imagination to envision how it would look in his own living room. This mental exercise allows him to mentally place the couch within the context of his home environment, considering factors such as size, color, style, and how it complements his existing decor.

By visualizing the couch in his living room, Joseph can gauge whether it will harmonize with the overall aesthetic and layout of the space. He considers how the couch will fit in terms of dimensions, ensuring it neither overwhelms nor gets lost in the room. Joseph takes into account the color scheme, contemplating whether the couch will be a complementary or contrasting element within the existing palette.

Furthermore, visualization enables Joseph to assess the functionality and practicality of each couch. He imagines himself and his family members sitting, lounging, or entertaining on the couch, considering aspects like comfort, seating capacity, and usability. Joseph also envisions the placement of the couch, mentally arranging and rearranging furniture in his living room to find the optimal configuration.

Through this visualization process, Joseph is able to mentally project and assess the potential outcome of each couch in his living room. This aids him in making an informed decision based on his preferences, lifestyle, and the specific needs of his living space. By relying on his imaginative faculties, Joseph ensures that the chosen couch not only meets his aesthetic preferences but also seamlessly integrates into his living room, creating a cohesive and visually appealing environment.

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f(5) =
f(3) =
f(-5) =
f(-3) =

Answers

Answer:

53636363633636336366363

A(n) _____ does not give an exclusive right of possession, but a right of permanent, intermittent use

A. remainder
B. license
C. easement
D. reversion

Answers

What does not give an exclusive right of possession but gives the right of permanent and intermittent use is License.

Basically, a license does authorize the use or performance of a task, activity etc.

License are issued to a qualified person to perform certain task, work or activities which are deemed legal.

For instance, when a medical license is issued to a medical practitioner, it does not give exclusive right but its allows the him/her to perform medical duties legally for some period of time.

In conclusion, the Option B is correct because License does not give an exclusive right of possession but gives the right of permanent and intermittent use is License.

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Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales. According to asset intensity, for every $100 increase in sales, the firm would need about $100 of additional assets. Group of answer choices True False

Answers

It is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

What is asset intensity?

The asset or capital intensity is a measure of the amount of assets needed to produce some dollars of sales revenue.

The asset intensity ratio is obtained by dividing the total assets by sales.

Thus, it is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

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