In common sense terms, explain why the profit-and-loss effects of a stack-and-roll hedge do not depend on the direction of change in oil prices when hedge accounting is used
What will be an ideal response?
Falling prices mean the profits are earned on the iterative series of forward contracts, but losses are incurred on the futures hedges. Hedge accounting allows the gains on all the forward contracts to be offset by losses on the futures contracts. If prices rise, just the opposite would happen.
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A disadvantage of using a credit card is that:
A. it is riskier than carrying cash because losing the card can cause the credit card issuer to file a case against the cardholder. B. it makes it difficult for the credit card users to track their expenditures. C. it makes it hard for some people to maintain financial discipline. D. many retailers do not offer warranty for products purchased using credit cards.
A person normally has several reference groups.
Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)