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NEW QUESTION: 1
Hedgehog International has numerous foreign exchange transactions. Management has elected to hedge
transactions as a means of mitigating transaction exposure to exchange rate risk. What is the most
effective means that Hedgehog International can use to avoid overhedging?
A. Hedgehog should enter into a cross hedging agreement.
B. Hedgehog should acquire parallel loans to provide a means for liquidating unneeded hedge securities.
C. Hedgehog should acquire the minimum amount required to hedge known transactions.
D. Hedgehog should acquire the maximum amount required to hedge known and projected transactions.
Answer: C
Explanation:
Choice "c" is correct. Hedgehog should only acquire the minimum amount of hedge contracts needed to
offset the effect of known transactions. Choice "a" is incorrect. Parallel loans represent a swap contract
for hedging long-term transaction exposure and are not specifically designed to mitigate the risk of
overhedging. Choice "b" is incorrect. Acquisition of the maximum number of hedge contracts for known
and projected transactions exposes the organization to greater risk of overhedging since projected
transactions might not materialize. Choice "d" is incorrect. Cross hedging involves techniques related to
currencies that do have hedge instruments available to mitigate risk and are not specifically designed to
avoid overhedging.
NEW QUESTION: 2
The following problems were reported from the field:
{exhibit 4967}
Which of the following techniques could be used to solve these problems?
A. Analyze process control data
B. Tighten present tolerances
C. Establish supplier certification
D. Increase the inspection rate
Answer: A
NEW QUESTION: 3
Click the Exhibit button on the right.
You have an AFF A300 controller with four volumes in the aggregate that is shown in the exhibit. You replicate all four volumes to one aggregate on a FAS8200 controller in a different cluster.
Referring to the exhibit, what are the storage efficiency savings on the destination FAS8200?
A. 4.28:1
B. 5.78:1
C. 2:1
D. 1.5:1
Answer: B