Hedgers and Speculators
Explain hedgers and speculators are two types of economic agents required for a derivatives market to function.
Expert
Speculators and Hedgers are two types of market participants which are necessary for the operation of derivatives market. Speculator attempts to profit from change in the futures price. For doing this, speculator will take a short or long position in futures contract which depends on his expectations of future price movement. Whereas, a hedger wishes to provide the price variation by locking in the purchase price of underlying asset through a long position in the futures contract or the sales price through a short position. In effect, hedger passes off the risk of price variation to the speculator who is able, or at least more eager, to bear this risk.
Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?
What are the various causes of decreasing of Gross profit margin?
The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost
How would you include political risk within the capital budgeting process of foreign investment projects?
Explain the importance in studying the international financial management?
Q : Micro-level theories regarding cause of Identify and elucidate three micro-level theories about the cause of deviance.
Identify and elucidate three micro-level theories about the cause of deviance.
What are the merits and demerits of the techniques shown below of depreciation? • Straight line process • Reducing balance process• Revaluation process • Usage process &b
What are Impersonal accounts and how it is classified?
Describe various restrictions of foreign equity ownership. Why countries impose these restrictions, explain your view on this?
18,76,764
1939579 Asked
3,689
Active Tutors
1417644
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!