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
Explain why warrants are rarely exercised unless the time to maturity is small? Warrants are seldom exercised till the time to expiration is small because the market price of the


You have to make a payment of $1,561.39 in 10 years. To get the money for this payment, you will make 5 equivalent deposits, starting today and for the following 4 quarters, in a b

QUESTION Part A Lavista Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year j

A fixed income security investor can expect to receive a rupee returns from the following sources: (a) Interest payment, (b) Capital gain or loss at maturity or when so

Nortel is considering the purchase of a new  call routing system.  The system will cost $50M to purchase, an additional $7M to install, and will last for 30 years.  The CCA rate as

Question : (A) The following data for the current year relate to a sterile pack purchased by the Apollo Hospital: Annual demand                        90,000 units Ann

TIME VALUE OF MONEY Time value of money can be described as the value of a unit of money at different time periods.  It involves that the value of a unit of money is not same

Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the subsequent g

stauffer , inc., has estimated sale and purchase requirments for the last half of coming year. parepare cash budget for the month of