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If a company uses a metal as a raw material in one of its products and hedge the price of that raw material using a derivative (futures or forwards). Will the hedge be a ... Voir Plus
It's a cash flow hedge as they are using forward contract in order to fix the price of the material and manage the cash outflow in future.
10 % . Thank you>>>>>>>>>>>
Its Fair Value Hedge what kind of item we are hedging its very important tool to identify. Fixed item or Variable Item For Example: 1-Fixed interest Loan, Fixed Interest ... Voir Plus
Its a simple Fair Value Hedge, as the company is worried of future price of metal and most importantly that metal is not purchased yet it will be purchased means it not y ... Voir Plus