Note whether the following are ways to avoid losses through hedging or insuring: 1. Lock-in a $979.00
Question:
Note whether the following are ways to avoid losses through hedging or insuring:
1. Lock-in a $979.00 fare home for the holidays.
2. Purchase a put option on a stock you do own.
3. Agree to purchase a house in one year for a fixed price of $200,000.
4. Lease a car with an option to purchase it in three years.
5. Enter into a swap contract to exchange fixed interest payments for floating-rate payments because you have floating-rate assets
6. As a wheat grower, enter into a forward contract to sell your wheat in two months at a fixed price set today.
7. Pay a premium for catastrophic health care coverage.
8. Pay for a credit guarantee on a loan you are worried about collecting.
Introduction to Algorithms
ISBN: 978-0262033848
3rd edition
Authors: Thomas H. Cormen, Charles E. Leiserson, Ronald L. Rivest