Though a Cross Hedge Has Somewhat Higher Risk Than an Ordinary

question 7

Multiple Choice

Though a cross hedge has somewhat higher risk than an ordinary hedge,it will reduce risk if which of the following occurs?

• A)futures prices are more volatile than spot prices
• B)the spot and futures contracts are correctly priced at the onset
• C)spot and futures prices are positively correlated
• D)futures prices are less volatile than spot prices
• E)none of the above

Describe the protection mechanisms for intellectual property rights in an international context, including relevant treaties and conventions.

Detail the scope and applications of international sales law as embodied in conventions like the CISG, and the distinction from domestic laws.

Assess the impact of international agreements and organizations on business practices and policies, including the promotion of fair competition and investment.

Elucidate the objectives and functioning of international financial institutions and arrangements like the IMF in stabilizing currency exchanges and facilitating international trade.

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Definitions:

Central

Relating to the center or most important part of something, often used in a variety of contexts.

Pineal Body

An endocrine gland of small size in the brain, it secretes the hormone melatonin, which plays a key role in managing the sleep-wake rhythm.

Descartes

A 17th-century French philosopher, mathematician, and scientist who made significant contributions to the development of modern philosophy and the theory of knowledge.

Artistic Relics

Historical objects or pieces of art which hold cultural, religious, or sentimental value, often preserved due to their significance.