With Regard to Operational Hedging Versus Financial Hedging

question 33

Multiple Choice

With regard to operational hedging versus financial hedging,

• A)operational hedging provides a more stable long-term approach than does financial hedging.
• B)financial hedging,when instituted on a rollover basis,is a superior long-term approach to operational hedging.
• C)since they both have the same goal,stabilizing the firm's cash flows in domestic currency,they are fungible in use.
• D)none of the options

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Definitions:

Residential Property

Real estate designed for people to live in, as opposed to commercial or industrial property.

Automobile Insurance

Insurance coverage for cars, trucks, motorcycles, and other road vehicles, providing protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.

Key-Person Insurance

A life insurance policy on a key employee whose death would cause a financial loss to the business.

Homeowners' Insurance

An insurance policy that provides financial protection against losses and damages to an individual's home and assets in the home.