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
Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send? An increase in cash dividends is frequentl

Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''s cost of capi

What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Gene

A useful matrix for acquisitions is Ansoff Matrix (business strategy knowledge) Ansoff product/market growth strategies model is a framework for the creation of strategic optio

What is a Treasury bill? How risky is it? Treasury bills are the short-term debt instruments issued by the U.S. Treasury that are sell at a discounted and pay face value at mat

What is capital rationing? Should a firm practice capital rationing? Why? Capital rationing is the practice of putting dollar limits on what will be invested in new capital bud

Why is the coefficient of variation a better risk calculates to use than the standard deviation while evaluating the risk of capital budgeting projects? The coefficient of variat

Do you provide help in college level Managerial Finance?