Suppose Alcoa in 1995 Had a Payable of FF 1

question 35

Multiple Choice

Suppose Alcoa in 1995 had a payable of FF 1 million due in one year.Alcoa's cost of the payable using a money market hedge is ____ and its cost using a forward market hedge is ____.

• A)$173,900;$177,470
• B)$174,925;$176,300
• C)$176,671;$172,900
• D)$178,937;$174,700

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Definitions:

Psychologic Homeostasis

The state of internal psychological balance and stability maintained by adaptive processes in response to external and internal changes.

Coping Mechanisms

Strategies or behaviors individuals use to manage stress, emotional conflict, or internal and external demands that are perceived as difficult.

Long-Term Care

Services and support provided to individuals with chronic illnesses or disabilities, focusing on their medical, personal, and social needs over an extended period.

Homeostatic Mechanism

The processes and systems within organisms that regulate internal conditions (like temperature, pH, and glucose levels) to maintain a stable, constant environment.