Historical Analysis of Recent Changes in Exchange Rates in Both

question 94

Multiple Choice

Historical analysis of recent changes in exchange rates in both the spot and futures markets for a given currency reveals that spot rates are thirty percent more sensitive than futures prices.Given this information, the hedge ratio for this currency is

• A)0.70.
• B)0.77.
• C)1.30.
• D)1.43.
• E)1.86.

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Definitions:

Social Cognitive Theories

A theoretical framework that emphasizes the importance of observational learning, imitation, and modeling in the development of behavior.

Gender-role Development

The process by which individuals learn and acquire the behaviors, attitudes, and values considered appropriate for males or females in their culture.

Later-born Children

Children born after the first child in a family, who may experience different parental expectations, sibling interactions, and developmental opportunities.

First-born Children

The first child born into a family, who may experience specific psychological traits and familial dynamics.