How should derivatives be used in financial risk management? What problems can occur?
Question:
How should derivatives be used in financial risk management? What problems can occur?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Derivatives are financial instruments whose value is derived from the value of an underlying asset index or rate They are widely used in financial risk management for various purposes such as hedging ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Understanding Healthcare Financial Management
ISBN: 9781567932645
5th Edition
Authors: Louis C. Gapenski
Question Posted:
Students also viewed these Business questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In December, 1993, Metallgescellschaft AG revealed publicly that its "Energy Group" was responsible for losses of approximately $1.5 billion, due mainly to cash-flow problems resulting from large oil...
-
KEEP EMPLOYEES HEALTHY Controlling Health Status and Healthcare Cost of Employees Force 6: Employee Health. With the dramatically increasing cost of healthcare and the fact that in the United States,...
-
The built-up shaft is designed to rotate at 450 rpm. If the radius of the fillet weld connecting the shafts is r = 13.2 mm, and the allowable shear stress for the material is Ï allow = 150 MPa,...
-
The arrivals at the company cafeteria are Poisson, with an average time between arrivals of 1.75 minutes during the lunch period. The average time for a customer to obtain lunch is 2.81 minutes, and...
-
Earnings before interest and tax (EBIT), rather than profit, is sometimes used as the numerator in the return on asset ratio. Discuss the rationale for using EBIT rather than profit.
-
A Sampling Distribution for Average Salary of NFL Players Use StatKey or other technology to generate a sampling distribution of sample means using a sample of size \(n=5\) from the YearlySalary...
-
A by- product of phosphate fertilizer production is pyrite waste, which contains arsenic and lead. From 1884 to 1906, seven phosphate fertilizer plants operated on a forty- three- acre operated on a...
-
Bleakhouse Bakers produces breads and pastries. Bleakhouse is considering introducing a new breakfast item. They estimate materials costs at $4.00 per dozen and overhead costs of $2.02 per dozen....
-
How are derivatives reported on a businesss financial statements?
-
How can swaps be used to reduce risk? To lower borrowing costs?
-
Ha: Ï _= 0 Specify an alternative hypothesis for a correlation t-test. For each exercise, decide, at the 10% significance level, whether the data provide sufficient evidence to reject the null...
-
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 6 $ 11 Accounts receivable 270 210 Inventory 105...
-
At what per annum rate must $260 be compounded daily for it to grow to $561 in 12 years? (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) (Assume 365 days...
-
During August, Diga Corporation plans to serve 44,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.38q...
-
Consider the information below about the following three stocks: Amethyst, Sapphire and Tanzanite. Market Price Amethyst $26 Sapphire $16 Tanzanite $10 Number of Shares 4 20 3 Cash $10 $65 $22 Debt...
-
Entry for Uncollectible Accounts Easy Rider International is a wholesaler of motorcycle supplies. An aging of the company'saccounts receivableon December 31, 20Y3, and a historical analysis of the...
-
Todd Ricketts is confused. He does not understand why rent on his apartment is a fixed cost and rent on a Hertz rental truck is a mixed cost. Explain the difference to Todd.
-
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012,...
-
Why are these securities preferred?
-
Why do businesses hold marketable securities?
-
In your view, what is the most important line of the cash budget?
-
Items Retail sales boxes (12 skeins per box) Online sales, skeins Number of retail orders Number of online leads Required: Order Size Small Medium Large 3,500 91,000 605 469,310 63,000 64,000 3,015...
-
Tanner-UNF Corporation acquired as an investment $300 million of 7% bonds, dated July 1, on July 1, 2024. Company management is holding the bonds in its trading portfolio. The market interest rate...
-
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a...
Study smarter with the SolutionInn App