Explain what is meant by a perfect hedge

Assignment Help Civil Engineering
Reference no: EM131404153

Explain what is meant by a perfect hedge. Does a perfect hedge always lead to a better outcome than an imperfect hedge? Explain your answer.

Reference no: EM131404153

Questions Cloud

What is the hedge that minimizes risk : What is the hedge that minimizes risk? What should the company do if it wants to reduce the beta of the portfolio to 0.6?
Discuss about the patient and employee satisfaction : Given that Elara healthcare aims at improving effectiveness and quality of healthcare, there is a need for measuring effectiveness and data analysis to enhance quality improvements.In order to do so, there is various effectiveness measuring techni..
What are the main skills of an it manager : IT manager's job purpose is to "Maintains information technology strategies by managing staff; researching and implementing technological strategic solutions." What are the main skills of an IT manager
What is the optimal hedge ratio for a three-month contract : What is the optimal hedge ratio for a three-month contract? What does it mean?
Explain what is meant by a perfect hedge : Explain what is meant by a perfect hedge. Does a perfect hedge always lead to a better outcome than an imperfect hedge? Explain your answer.
Calculate the quoted futures price for the contract : The term structure is flat, and the rate of interest wit semiannual compounding is 12% per annum. The conversion factor for the bond is 1.5. The current quoted bond price is $110. Calculate the quoted futures price for the contract.
In what sense might this statement be true : Some people have claimed that "Science has become the religion of the twentieth and early twenty first centuries." At first glance this may seem a contradiction, as for centuries science and religion have been cast as polar opposites. In what sens..
What arbitrage opportunities are open to the bank : ,The Eurodollar futures price for a contract maturing in 91 days is quoted as 89.5. What arbitrage opportunities are open to the bank?
Estimate the forward libor interest rate : The standard deviation of the change in the short-term interest rate in one year is 1.1%. Estimate the forward LIBOR interest rate for the period between 6.00 and 6.25 years in the future.

Reviews

Write a Review

Civil Engineering Questions & Answers

  Determine what are the effects of reducing w/c on porosity

What are the effects of reducing w/c on porosity, permeability, and compressive strength of hydrated cement. Porosity: capillary pore volume/total volume of hydrated cement specimen

  Determine for each case the ration of the total energy

Consider two cases: (1) a constant wind velocity that is twice the mean wind velocity and operating half the time; and (2) a constant wind velocity that is three times the mean wind velocity operating one-third of the time. At all other times, the wi..

  Find length of 10 equal-sized aeration basins for treatment

Calculate the length of 10 equal-sized aeration basins for secondary treatment of a wastewater flow of 10 MGD with 20,000 lb of BOD per day for a conventional activated sludge process with a maximum loading of 40 lb BOD/ 1000 ft3*d.

  How much will bar deform if it is released from the framwork

A 24-in.-long copper bar with a yield strength of 30,000 psi is heated to 120°C and immediately fastened securely to a rigid framework. The coefficient of thermal expansion for copper is 16.6x10-6 (1/oC).

  Calculate bending stress distribution which present at base

Assume the beam is 2" x 10" in cross section. Calculate the bending stress distribution that is present at the base of the cantilever and at every 2.5 ft increment toward the free end of the beam

  Should bernard bid for the project assignment

Does Bernard have an unfair advantage over firms having designed the project on which he wants to bid?

  Compute the percent voids in total mix, percent voids

An aggregate blend is composed of 53% coarse aggregate by weight (sp. gr. 2.702), 43% fine aggregate (sp. gr. 2.621), and 4% filler (sp. gr. 2.779)/

  Determine the couple m required to hold the system

the pin at B is attached to member ABC and can slide freely along the slot cut in the fixed plate. Neglecting the effect of friction, determine the couple M required to hold the system in equilibrium when.

  Write a used-defined function that calculates the average

Write a used-defined function that calculates the average and the standard deviation of a list of numbers. Use the function to calculate the average and the standard deviation of the following list of grades:   80 75 91 60 79 89 65 80 95 50 81

  Describe how the following ratios and indices are used

A breif explination on clay mineralogy including isomorphous substitution, specific surface, cation exchange capacity and their effect on clay properties.

  Determine annual nominal and effective interest rate

If john borrows $6346.40 now to buy a car (the car does not include the down payment) and makes monthly payments of $220 for 36 months beginning one month from now

  State whether each member is in tension or compression

For the truss shown, determine the force in members AB, BD, and BC. State whether each member is in tension or compression. Note that member BC is vertical.

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!

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