Which is not a hedging strategy for wbs corporation

Assignment Help Financial Accounting
Reference no: EM132746395

Problem 1: As a UK based company, WBS corporation just signed a contract to sell products to a US company. According to the contract, WBS corporation would receive $5 million payment in 3 months. Which of the following is NOT a hedging strategy for WBS corporation?

a) Long position in 3-month European put option on $5 million USD
b) Long position in 3-month American put option on $5 million USD
c) Short position in 3-month future contracts on USD with $5 million notional principal
d) Long position in 3-month forward contract on USD with $5 million notional principal

Reference no: EM132746395

Questions Cloud

Does given cause the trial balance to be out of balance : When a general journal is used to record sales returns, the credit of the entry must be posted twice. Does this cause the trial balance to be out of balance?
Compute buffalo actual return on plan assets : For Buffalo Corporation, year-end plan assets were $2,006,000. At the beginning of the year, plan assets were $1,775,000. During the year, contributions to the.
What the cumulative surplus is : The beginning short-term debt is $28,000 with a quarterly interest rate of 1.4 percent. At quarter end, the cumulative surplus (deficit) is
Explain antimicrobial susceptibility test : How do you measure the zones on the plate as results in antimicrobial susceptibility test?
Which is not a hedging strategy for wbs corporation : According to the contract, WBS corporation would receive $5 million payment in 3 months. Which of the following is NOT a hedging strategy for WBS corporation?
Evolutionary relationship of the four organisms : What can you infer about the evolutionary relationship of the four organisms: cow, chicken, potato, and yeast?
Determine discount rate to be used for evaluating project : Assuming that the appropriate discount rate for the project is the firm's cost of capital. Determine the discount rate to be used for evaluating the project
Prepare the adjusted entries : On September 1, 2019, Winnie-the-Pooh, a lawyer, opened his own legal practice. The business adjusts and closes its accounts at the end of each month.
Provide an interval estimate for the true population mean : The standard deviation was .66. Provide an interval estimate for the true population mean GPA, u using a confidence coefficient of 0.98.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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