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Explain and compare the costs of hedging via the forward contract and the options contract.
Answer: There is no up-front cost of hedging through forward contracts. Though, in the case of options hedging hedgers should pay the premiums for the contracts up-front. Though, the cost of forward hedging may be realized ex post while the hedger regrets his/her hedging decision.
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Eurocurrency A currency on deposit outside its country of source. Such deposits are well known as external currencies, international currencies or xenocurrencies.
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how to calculate the net present value when there is company tax rate and rate of return assume that lease is for 2 years payable at the begining of the yr, at the end of two yrs t
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