Explain cross hedging, Financial Management

Explain cross-hedging and discuss the factors determining its effectiveness.

Answer: Cross-hedging includes hedging a position in one asset by taking a position in another asset. The efficiency of cross-hedging would depend upon the strength and stability of the relationship among the two assets.

Posted Date: 5/10/2013 3:40:14 AM | Location : United States

Related Discussions:- Explain cross hedging, Assignment Help, Ask Question on Explain cross hedging, Get Answer, Expert's Help, Explain cross hedging Discussions

Write discussion on Explain cross hedging
Your posts are moderated
Related Questions
How are production limits used in practice to raise the prices of the following goods or services: (a) taxi rides, (b) drinks in a restaurant or bar, (c) wheat or

Determine the Amount of financing required   The last factor determining company's cost of funds is the amount of financing required, where cost of capital increases as the fin

No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In

Q. Show the Projected Balance Sheet Method? Projected Balance Sheet Method: - Under this process an approximate is made of assets and liabilities for a future date and a projec

Q. What is Cash Credit? A cash credit is an arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible securities or guarantees

Why do you think closed-end country funds frequently trade at a premium or discount? Answer:  CECFs (closed-end country funds) trade at a premium or discount since capital market

Examples of ICQ's and ICEQ's ICQ: "Does an authorised senior person review purchase invoices before payment is made?" ICEQ: "Can payments be made on purchase invoices th

Factoring Denotes of enhancing a business's cash flow whereby outside organizations pays a firm a certain portion of its trade debts and then gets the full amount of cash from

what are the characteristics of relative cost