Define an example to Hedge
Define an example to Hedge?
Expert
You buy a call option, this could go up or down in value depending upon whether the underlying goes up or down. Therefore now sell some stock short. When you sell the right amount short then any rises or falls in the stock position will balance the falls or increases in the option, decreasing risk.
Explain in brief about financial ratio?
What considerations might restrict the extent on which the theory of comparative advantage is realistic?Originally the theory of comparative advantage was advanced by the nineteenth century economist David Ricardo as an explanation for why natio
Why do you think the empirical studies regarding factors affecting equity returns mainly showed which domestic factors were more significant than international factors, and, secondly, that industrial membership of firm was of little importance in forecasting t
Describe how exchange rate fluctuations influence the return from a foreign market measured in dollar terms. Describe the empirical evidence on the effect of exchange rate uncertainty on the risk of foreign investment.Mostly exchange rate fluctu
Why is Vomma/Volga measures convexity?
Good fellow national bank decided to compete with a savings and loan by offering 30 year fixed rate mortgage loans at 8% annual interest. It plans to obtain the money got the loans by selling one year 6% CD to it's depositors. During first year of operation, good fellows sold it's depositors 1,000,0
Explain how changes occur in Crash Metrics during a crash?
Explain asymptotic analysis in interest rate model.
Explain probability of some buses having arrived when the Poisson process is utilized.
Will the cost of equity be zero if dividends paid to common stockholders will not be legal obligations of a corporation?
18,76,764
1933295 Asked
3,689
Active Tutors
1431005
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!