The Following Data Is Provided for the Fair Value of a Share

question 28

Multiple Choice

The following data is provided for the fair value of a share portfolio,and the fair value of a forward contract taken out on 1 July 2007 to 'hedge' movements in the fair value of the shares.Assume the hedge was highly effective at inception of the hedge. Which of the following statements is true?

• A) It is not an effective hedge as there was a difference of $10,000,000 between the fair values of the shares and the forward contract at inception.
• B) It is not an effective hedge as a forward contract cannot be used as a hedging instrument.
• C) It is an effective hedge as the movement in the fair value of the hedging instrument between 1 July 2007 and 30 June 2010 offset movements in fair value of the shares in the same period, which is within the 80/125 per cent hedge effectiveness range.
• D) It is an effective hedge as the movements in the fair value of the hedging instrument offset movements in fair value of the shares and stayed within the 80/125 per cent hedge effectiveness range throughout the period to 30 June 2010.
• E) It is not an effective hedge as the movements in the fair value of the hedging instrument failed to offset movements in the fair value of the shares and stay within the 80/125 per cent hedge effectiveness range throughout the period to 30 June 2010.

Examine the economic factors and policies that influenced American and global economics during the 1920s.

Understand the evolution of race relations and the civil rights movement during the 1920s.

Evaluate the impact of the 1920s on American foreign policy and international relations.

Discuss the influence of the 1920s on modern American feminism and gender roles.

---

Definitions:

Genetically Modified Ingredients

Ingredients in food that have been modified through genetic engineering to enhance certain traits such as increased resistance to herbicides or improved nutritional content.

Social and Political Pressures

External forces from society and governmental entities that influence an organization's or individual's decisions and actions.

Technological Advancements

Describes the progressive development in technology, leading to new inventions and improvements in existing technologies.

Unfreezing

The initial phase in the process of change, where existing beliefs and behaviors are questioned, making room for new ways of thinking.