Avoiding losses through hedging or insuring

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Reference no: EM1355592

Note whether the following are ways to avoid losses through hedging or insuring:

Lock in a $979.00 fare home for the holidays.

Purchase a put option on a stock you do own.

Agree to purchase a house in one year for a fixed price of $200,000.

Lease a car with an option to purchase it in three years.

Enter into a swap contract to exchange fixed interest payments for floating-rate payments because you have floating-rate assets.

As a wheat grower, enter into a forward contract to sell your wheat in two months at a fixed price set today.

Pay a premium for catastrophic health care coverage.

Pay for a credit guarantee on a loan you are worried about collecting.

Reference no: EM1355592

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