What do you call the hedging technique

Assignment Help Finance Basics
Reference no: EM132027172

Question: If you have a A/P of Swedish Krona 2.5 million due in 3 months, and you would like to use euro futures contract from CME to hedge the risk. Assume today's exchange rate is €1 = SEK8.2. The contract size for euro futures is €125,000 per contract. What do you call this hedging technique?

Reference no: EM132027172

Questions Cloud

What would the expected value : What would the expected value for the "male-no" cell be?
Weekly sales of volvo cross country station : The weekly sales of Volvo's Cross Country station wagons are normally distributed witha mean of 1,000 and standard deviation of 250.
How would you advise regarding the deductions : An owner of an automobile body shop comes into your office for tax advice. He has been thinking about updating his antiquated computer system so he purchased.
What is the margin of error in cm : What is the margin of error in cm? (Round to one decimal place as needed.)
What do you call the hedging technique : If you have a A/P of Swedish Krona 2.5 million due in 3 months, and you would like to use euro futures contract from CME to hedge the risk.
What is the calculated chi-squared value : A sample of students responses are reproduced below. Do students prefer a particular type of bar food? Use critical value = 6.58.
What effective rate of return have you earned : You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 8% APR.
Write down a condition the forest owner may use : Write down a condition the forest owner may use to choose a rotation length that maximizes the net present value of profits from timber harvest.
Binge drinking and to drinking-related arrests : A researcher was interested in gender differences as related to binge drinking and to drinking-related arrests.

Reviews

Write a Review

Finance Basics Questions & Answers

  Price of products and an implied increase

Is there any news today (6/3/2016) on the CME that would explain an increase in the price of products and an implied increase in the value of currency?

  General and administrative expenses

Advantage first corporation has sales of $4,701,980; income tax of $468,154; the selling, general and administrative expenses of $297,332

  What is the purpose of the export import bank

What is the purpose of the Export-Import Bank?

  How do such systems actually incorporate hypothesis testing

What other examples can you find? How do such systems actually incorporate hypothesis testing?

  Determine the ending inventory and cost-of-goods-sold

1 nelson framing began march with 73 units of inventory that cost 23 each. during the month nelson made the following

  The inflation rate in the us is projected at 6 per year

the inflation rate in the u.s. is projected at 6 per year for the next several years. the australian inflation rate is

  Interested in monitoring the amount of cola injected

A soft-drink bottling company is interested in monitoring the amount of cola injected into 16-ounce bottles by a particular filling head. The process is entirely automated and operates 24 hours a day.

  Compute cost of new common stock

Expected cash dividends are $2.50, the dividend yield is 6%, flotation costs are 4% of price, and the growth rate is 3%. Compute cost of new common stock.

  What is the apr used for this loan

You obtained a loan of $20,000 to finance your home improvement project. Based on a monthly compounding over 24 months, the end -of-the-month equal payment was figured to be $922.90. What is the APR used for this loan?

  Measure the value of the company

A company has expected cash flows of $ 1.85 million. $ 2.25 million, and $2.92 million in the next three years For Years 4 through 10.

  Faced with the option of when to harvest the lumber

The company is faced with the option of when to harvest the lumber. Whatever harvest cycle the company chooses, it will follow that cycle in perpetuity. Since the forest was planted 20 years ago, the options available in the case are 40-, 45-, 50, an..

  Determine the monthly contribution margin

Determine the monthly breakeven quantities during the first year of nachos sales, assuming constant sales mix of 1 hotdog and 2 units of nachos.

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