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What are the advantages or benefits of a currency options contract as a hedging tool compared with the forward contract?
Answer: The major advantage of by using options contracts for hedging is that the hedger can decide whether to exercise options on observing the realized future exchange rate. So Options provide a hedge against ex post regret that forward hedger might have to suffer. Hedgers can only remove the downside risk whereas retaining the upside potential.
a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel. Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport c
Routine functions For the efficient execution of the managerial finance functions, routine functions have to be executed. Such decisions concern procedures and systems and incl
If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Describe your answer. Even though common stockholders do not com
Solutions to shareholders and government agency problemquestion #Minimum 100 words accepted#
A brief scenario for each of two different organisations is presented. You are advised to read both scenarios before answering the questions that follow. Use the scenario details t
Q. Calculate the optimum amount of funds to transfer? The Baumol model is derived from the EOQ model and is able to be applied in situations where there is a constant demand fo
A company is expected to pay a dividend of D1 = $1.25 per share at the last of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future.
What is the Modigliani and Miller theory of dividends? Explain. The Modigliani-Miller theory of dividends states that dividend theory is not relevant. They state that it is the
Special bond structures are the municipal securities bearing special security structures. They are of two types - insured bonds and pre-refunded bonds.
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