Financial hedging of firm’s operating exposure
List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?
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Financial hedging is implemented rapidly with relatively low costs; however, it is complex in order to hedge against long-term, real exposure with financial contracts. Otherwise, operational hedges are costly, not easily reversible and time-consuming.
When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?
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Explain the terminology that an option is in-, at-, or out-of-the-money?
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Explain the term Responsibility Accounting and types of responsibility centres with example?
What is the advantage of Historical Cost in Decision Making?
Explain implications of the purchasing power parity for the operating exposure.
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