22-72 Historical Analysis of Recent Changes in Exchange Rates in Both

question 108

Multiple Choice

22-72 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.

---

Definitions:

Myers-Briggs Type Indicator

A scale that categorizes people on four dimensions: introvert–extravert; sensing–intuitive; thinking–feeling; and perceiving–judging.

Perceiving Type

A psychological classification related to how individuals prefer to take in information, focusing on flexibility and adaptability.

Company Procedures

Established methods and guidelines set by a business for carrying out its operations and dealing with various situations.

Audience Benefits

Benefits or advantages that the audience gets by using the communicator’s services, buying the communicator’s products, following the communicator’s policies, or adopting the communicator’s ideas. Audience benefits can exist for policies and ideas as well as for goods and services.