When would a forward contract be better for hedging than a futures contract?
What will be an ideal response?
A forward contract is better suited for a nonstandard agreement where specific terms need to be negotiated or when there are no suitable futures contracts available (e.g., hedging an LDC currency). Forwards also avoid the daily liquidity problems that marking to market on futures contracts can cause. Forward contracts are generally not marketable, so the participant should be sure the contract is needed and must be willing to take or make delivery. Forwards require each party to assess the creditworthiness of the counterparty, so one needs enough information about the other party to assess the likelihood of default. Default risk is not an issue for futures contracts.
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A) 8.16 times. B) 6.25 times. C) 5.25 times. D) 5.91 times.
Under a deed in lieu of foreclosure, the property is conveyed to the lender in satisfaction of the mortgage.
Answer the following statement true (T) or false (F)
A ________ is the implementation of an operation
A) meta-operation B) method C) query D) constructor
Melanie worked at a meat packing plant during the 1920s. What would she have been most surprised to see happening at the plant?
A. Employees earning vacation time B. Horrible working conditions C. The organization of labor unions D. Frequent accidents resulting in injury and death E. Employees working long hours