The Covariance of the Change in Spot Exchange Rates and the Change

question 68

Multiple Choice

The covariance of the change in spot exchange rates and the change in futures exchange rates is 0.6606, and the variance of the change in futures exchange rates is 0.6060.The variance of the change in spot exchange rates is 0.9090.What is the degree of hedging effectiveness?

• A)0.61.
• B)0.90.
• C)0.87.
• D)0.82.
• E)0.79.

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Definitions:

Continuance Commitment

The emotional attachment employees feel towards their company because they perceive a high cost associated with leaving it.

Emotional Attachment

Emotional attachment is the emotional bond between an individual and an object, idea, place, or person, often leading to a sense of belonging or affection.

Job Satisfaction

The level of contentment employees feel with their job roles, responsibilities, and work environment, which can affect their performance and commitment.

Ethical Issue

A situation or decision that involves a conflict between the perceived correctness of different moral imperatives or ethical principles.