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Futures and Currency Swaps Eliminate Unfavorable Price Movements, Whereas Options

question 11

True/False

Futures and currency swaps eliminate unfavorable price movements, whereas options can be used to eliminate the effect of both favorable and unfavorable price movements.

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Definitions:

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary’s net assets and incomes.

Noncontrolling Interest

A minority stake in a corporation, where the share does not offer control over the company's operations.

Initial Value Method

A type of accounting for investments where the investment is recorded at its cost at the time of acquisition, without subsequent change for increases or decreases in value.

Noncontrolling Interest

A share of equity in a subsidiary not held by the parent company, reflecting the interest of minority shareholders.

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