I believe that Chris Hedges book War is a Force That Gives Us Meaning is spot on how war affects a person and a society. Chris Hedges believes that war is negative and that it degrades the ones who participate in it. War changes the people that fight in it and just like a drug war becomes an addiction‚ once you get a taste of it is hard to stop. War brings out the nationalism of those who fight in it and at the core of nationalism is racism. How People Change People change during war‚ and not
Premium War World War II Psychology
from what they brought in‚ Baker only made a $3‚871.20 profit on the deal when they expected to make a $59‚383.30 profit. To manage the exchange-rate risk of their deal with Nova‚ Baker could have hedged in the forward market or hedge in the money market. In order to hedge in the forward market‚ Baker would have to strike a deal with the bank where the bank would provide Baker with a guaranteed exchange rate for the future exchange of currencies (forward rate). These contracts specified a date‚ an
Premium Currency United States dollar Foreign exchange market
duration than the spot market (Shapiro‚ 2010). The hedger will look to hedge their risk of currency depreciation by locking in a fixed exchange rate to be paid at a future date. The forward contract is calculated based on the forward rate and the swap rate. The forward rate is the interbank exchange rate and the swap rate is the market exchange rate (Shapiro‚ 2010). The forward contract would essentially allow the hedger to hedge
Premium Exchange rate Foreign exchange market Inflation
years before) July 1993. 3. To Hedge or Not? Do you think Tiffany should actively manage its yen-dollar exchange rate risk? Why or why not? Explain the benefits and costs of hedging. 4. What to Hedge? If Tiffany were to manage its exchange rate risk‚ then identify what exposures should be managed via such a hedging program (e.g.‚ hedge sales‚ hedge gross profit‚ or hedge cash flows‚ etc.). Explain why. 5. Forward or Options? If Tiffany were to hedge the yen-dollar exchange rate risk‚
Premium United States dollar Strike price Put option
MGRM chose to hedge this exposure by using offsetting long positions with gasoline‚ heating oil‚ and crude oil futures on NYMEX. It’s important to note that the magnitude and complexity of contracts for MGRM made it difficult to hedge this position. One of the complicating factors for MGRM was that although these contracts had the same term‚ the details of delivery varied per contract. Some contracts stated monthly‚ and others stated longer term delivery. MGRM was also only able to hedge 55 million
Premium Futures contract Short Forward contract
assured of a reasonable return. In this case‚ he would enter into a futures contract from the short side. Now‚ the efficiency of the hedge depends on 2 things: the underlying asset and the time to maturity for the futures contract and these should correspond to the farmer’s produce and the harvesting period. What we have discussed here is a short hedge. Similarly‚ a long hedge will be used when the party intends to buy a certain asset in the future and wants to reduce risk of rising prices. Basis Risk
Premium Futures contract Forward contract Derivative
dollar causes a given amount of yen to convert to fewer dollars in the future. This loss of value could be severe if the yen depreciates by a significant amount. b. If Intel chooses not to hedge its transaction exchange risk‚ what is Intel’s expected dollar revenue? Answer: If Intel chooses not to hedge‚ the expected dollar revenue is the expected dollar value of the ¥100‚000‚000. The expected spot rate incorporates a 1% weakening of the dollar. This means that the expected yen price of the
Premium United States dollar Currency Forward contract
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail. The conversion factor‚ for any particular bond deliverable into a futures contract is a number by which the bond future delivery settlement price is multiplied‚ to arrive at the delivery price for that bond. Conversion factor relates all outstanding deliverable government bonds and notes
Premium Futures contract
cruel or evil. It is important because the reader needs to find what Hedges’ is trying to argue with. Chris Hedge may be misusing the word artifice‚ and it doesn’t necessarily make sense on what his argument is trying to say. When Hedges’ argument says “ The most essential skill… is artifice.” Which part of the paragraph do you think is the artifice part. What make sense or adds up to what Hedges’ is trying to say. Identify what Hedges’ point is‚ and write down what artifice is to you. As in how would
Premium Ethics Morality Logic
1. J & L should hedge only some of its exposures to diesel fuel. Although there are several financial instruments available for J & L to hedge against the risk of rising diesel fuel prices‚ these instruments still have their own downsides and possibly their own risks. For example‚ the future contracts from NYMEX seems like an effective hedging strategy for J &L‚ but there are some difficulties in terms of using futures from NYMEX to hedge against the diesel prices. NYMEX does not trade
Premium Investment Stock market Economics