A Forward Contact to Buy US$40 000 for a Planned

question 16

Multiple Choice

A forward contact to buy US$40 000 for a planned purchase transaction of US$50 000 has a hedge ratio of:

• A) 40%.
• B) 125%.
• C) 80%.
• D) 20%.

Understand the concept of semelparous and iteroparous life histories and the factors influencing these reproductive strategies.

Determine appropriate methods for estimating population sizes based on the characteristics of the species.

Explain the factors contributing to the rapid increase in human population since 1825.

Understand the concept of metapopulations and the importance of connectivity among populations.

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Definitions:

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Deadweight Losses

Efficiency losses in an economy occurring when total societal welfare is not maximized, typically as a result of market distortions like taxes or subsidies.

Competitive Equilibrium

A state in a market where demand equals supply, meaning that there's no excess supply or demand at the current price.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, maximizing societal welfare.