User Account

All Pages

Explain what happens if a swap is used ineffectively

Assignment Help Finance Basics
Reference no: EM131335026

Answer both of the following questions in a 2-3 page Word document:

1. To be adequately informed about the adequacy of a company's risk management, investors and creditors need information about strategies for holding derivatives and specific hedging activities. Toward that end, extensive disclosure requirements are required. Identify several of these requirements.

2. The key criterion for qualifying as a hedge is that the hedging relationship must be highly effective in achieving offsetting changes in fair values or cash flows based on the hedging company's specified risk management objective and strategy. Explain what happens if a swap is used ineffectively to hedge the fair value of a note.

Reference no: EM131335026

Questions Cloud

Discuss the importance of discretion in police : The police play a key role in the juvenile justice system because they are, typically, the point of first contact. Their decisions often affect the youth throughout the entire juvenile justice process.
What is the book value per share of common stock : What is the acid-test ratio for the current year? What is the inventory turnover for the current year? What is days' sales in receivables for the current year? What is the book value per share of common stock for the current year?
Calculate the magnitude of the diffusion-controlled rate : The viscosities are 1.00 × 10-3 kg m-1 s-1, and 2.2 ×10-4 kg m-1 s-1, respectively.
Summarize the impact of each logical fallacy : Critical Thinking: Informal Fallaciesprovides a list of various logical fallacies with definitions. For this assignment, you will apply ethical reasoning and recognize fallacies in ethical reasoning. In your three-page paper,Describe at least five..
Explain what happens if a swap is used ineffectively : Toward that end, extensive disclosure requirements are required. Identify several of these requirements. Explain what happens if a swap is used ineffectively to hedge the fair value of a note.
Conduct research to find out what the average : The purpose of this exercise is to gain practical insight into the necessity of using precise language when drafting a contract. Your task is to first choose a side: labor or management; then write a mutually agreeable contract term using these s..
Discuss the pros and cons of this unified standards effort : Discuss the pros and cons of this unified standards effort. Explain. Define the type of derivative used and the purpose of it use by the company?
Draft a legal memorandum about an electronic research : Describe two (2) ways in which using an electronic research tool could increase your productivity on the case.Explain two (2) ways that you could use electronic spreadsheets in order to organize your case load.Explore the concept of document review,..
What are the services and fees that the service provides : What are the services and fees that the service provides? What type of clients do they serve? Do they specialize in any special industries?

Reviews

Write a Review

Finance Basics Questions & Answers

  Defined benefit pension plan and defined contribution plan

List two advantages, from the investor point of view, of an exchange traded fund, vis-a-vis a closed-end fund? Distinguish between a defined benefit pension plan and a defined contribution plan?

  Find market anticipate yield on one year treasury securities

One year treasury securities yield 6.9%, while two year Treasury securities yield 7.2%. If the expectations theory is correct (that is, the maturity risk premium = 0)

  Compute the npv and break-even level

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation company. Both Projects require an annual return of 14%.

  Hierarchical and network database structure

Compare and contrast the Hierarchical Database Structure and the Network Database Structure

  Tuition per month payable at end of class

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,800 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals ar..

  Loans for multifamily properties with more

Loans for multifamily properties with more that 50 units are currently available for 20 years at 7%. Borrowers can obtain and 80% loan. Investors in multifamily properties in this market demand 13% due to the current volatility of the market. What is..

  Financial news claims to be unbiased and fact based this is

financial news claims to be unbiased and fact based. this is offset at least partially by the desire to sell news. can

  If you put up 28000 today in exchange for a 825 percent

if you put up 28000 today in exchange for a 8.25 percent 15-year annuity what will the annual cash flow

  Computation the investment for each year

Computation the investment for each year and wants to invest equally amounts at the end of each year for the next 6 years to accumulate

  Calculate standard deviations of the returns

Julie is planning buying stock in and only one of the following companies which runs a website against geared retirement income and has a 10 percent probability of returning 20 percent

  Questionnaire scores between the two companies

a. Are there differences in questionnaire scores as a result of the using the two widgets? Explain. b. Are there differences in questionnaire scores between the two companies? Explain.

  Calculate the firm’s effective borrowing rate

If the prime rate is assumed constant at 4.25 percent during the term of the loan and Matthews' average loan outstanding during the year is $5.0 million, calculate the firm's effective borrowing rate (EBR).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd