A Hedge Is

question 237

Multiple Choice

A hedge is

• A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk.
• B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value.
• C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets.
• D) active management of a floating exchange rate on the part of a country's government.

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Definitions:

Labour Hours

The total number of hours worked by employees during a specific period, usually considered for costing or productivity analysis.

Operations Management

The area of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.

Contribution Margins

The amount by which a product's selling price exceeds its total variable costs, indicating the portion of sales that contributes to covering fixed costs.

Machine Hours

A measure of production time, representing the total hours a machine is operated within a specific period for manufacturing purposes.