Given an example of how a money market hedge is constructed?

What will be an ideal response?


Answer: If the underlying business transaction gives you a liability in foreign currency, you can borrow domestic currency, convert the principal from the borrowing into foreign currency, and invest the foreign currency thereby acquiring a foreign currency asset that is equivalent in value to the underlying foreign currency liability. You would want to borrow an amount of domestic currency equal to the present value of the foreign currency liability when converted at the spot exchange rate.

Business

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Communication theorists provide several explanations for what constitutes a message. Name and describe several of the most popular explanations

What will be an ideal response?

Business

Emotional reaction such as anger, hostility, frustration, pain, or anxiety is most likely to occur during which stage of conflict?

A) Frustration B) Conceptualization C) Behavior D) Outcome

Business

Prewritten or developed software or hardware products that already exist for purchase are called ______.

a. commercial off-the-shelf (COTS) software b. application software c. integration software d. RFP software

Business

A company has net credit sales of $91,000, beginning net accounts receivable of $24,000 and ending net accounts receivable of $16,000

Calculate the days' sales in receivables. (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole day.) A) 61 days B) 50 days C) 91 days D) 80 days

Business