Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer correct explain plz asap plz both are questions QUESTION 5 Please select all that are true regarding hedging in the currency (FX) markets:
Please answer correct explain plz asap plz both are questions
QUESTION 5 Please select all that are true regarding hedging in the currency (FX) markets: The basic idea of hedging in FX is to lock in an exchange rate for a date or time in the future OFX hedging helps mitigate risk on the return trip of an investment from a foreign currency Hedging in the FX market is similiar to arbitrage since it is for profits FX hedging can reduce the risks to profits for domestic firms that have international supply chains, either for sales (exports) or inputs (Imports). ")FX hedging transfers the risk from the future to the present QUESTION 6 Please select all of the following that are true regarding this situation: Country A has had an unexpectedly bountiful harvest of wheat but Its steel production (sold domestically and internationally) is at the same level as it has been the last fow years. Country A will Isee a decrease in domestic investment (DI) from foreigners, cotoris paribus The domestic stool market will be unaffected ) The domestic wheat market will be unaffected Country A will see an increase in steel imports, ceteris paribus Country A will see a decrease in steel exports, cateris paribus Country A will see an increase in wheat exportsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started