Corporations Questions and Answers

What is vanilla futures hedging?




Answers: Vanilla and hedging are financial terms.

Vanilla options are Options that are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security. For example, buying a call option provides the right to buy a specified quantity of a security at a set strike price at some time on or before expiration, while buying a put option provides the right to sell. Upon the option holder's choice to exercise the option, the party who sold, or wrote, the option must fulfill the terms of the contract.

In finance, a hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment. Hedging is a strategy designed to minimize exposure to an unwanted business risk, while still allowing the business to profit from an investment activity. Typically, a hedger might invest in a security that he believes is under-priced relative to its "fair value" (for example a mortgage loan that he is then making), and combine this with a short sale of a related security or securities. Thus the hedger is indifferent to the movements of the market as a whole, and is interested only in the performance of the 'under-priced' security relative to the hedge. Holbrook Working, a pioneer in hedging theory, called this strategy "speculation in the basis," where the basis is the difference between the hedge's theoretical value and its actual value (or between spot and futures prices in Working's time).

Some form of risk taking is inherent to any business activity. Some risks are considered to be "natural" to specific businesses, such as the risk of oil prices increasing or decreasing is natural to oil drilling and refining firms. Other forms of risk are not wanted, but cannot be avoided without hedging. Someone who has a shop, for example, expects to face natural risks such as the risk of competition, of poor or unpopular products, and so on. The risk of the shopkeeper's inventory being destroyed by fire is unwanted, however, and can be hedged via a fire insurance contract. Not all hedges are financial instruments: a producer that exports to another country, for example, may hedge its currency risk when selling by linking its expenses to the desired currency. Banks and other financial institutions use hedging to control their asset-liability mismatches, such as the maturity matches between long, fixed-rate loans and short-term (implicitly variable-rate) deposits.

Now that CCG is belly up, has anyone tried to get their money back? Are their any steps to getting refunded?




Answers: huh? srry i couldn't help♄

Larger company more stakeholders?

If there is a small roadside restuarant and an established Happy Chef roadside restaurant, which stakeholders would the larger restaurant hold which maybe the smaller one does not hold?


Answers: Stakeholders in any company are
customers
workers
creditors
shareholders
holders of loan/debenture stock
banks
owners/partners

a substantial one wouldnt always hold an owner or partners but it is credible to have shareholders or holders of loan stock

small ones would probably hold owners/partners but not necessarily shareholders or holders of loan stock

They would probably both have adjectives the remaining categories of stakeholder

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