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NEW QUESTION: 1
It is January and an Australian importer needs to pay USD 1,120,000 at the end of August to a US creditor. If a AUD/USD futures contract is trading on the exchange at a futures price of 0.6750 (ie, 1 AUD = 0.6750 USD), and the contract size is USD 100,000, what would represent an appropriate hedge?
A. Buy 11 contracts to the September expiry date and receive delivery of USDs in September
B. Buy 11 contracts to the September expiry date which are closed out in August at the end of August.
C. Buy 17 contracts to the September expiry date which are closed out in August at the end of August.
D. Sell 11 contracts to the September expiry date and make delivery of USDs in September
Answer: B
Explanation:
Explanation
This question touches upon a couple of issues that relate to hedging foreign exchange exposures using futures contracts. Firstly, many futures contracts on exchanges are available only at specific maturity dates, for example, the IMM dates. They may or may not coincide with actual liabilities for a running business. Also, futures contracts are standardized, ie their notional amounts are fixed rounded sums, and they can only be traded in whole numbers. This often means business using futures for hedging end up having a close enough, but not perfect hedge.
For our importer in the question, clearly he has to buy USDs so he can make his payment. Since each contract gives him USD 100k, he should buy 11 contracts that will get him very close to the amount he finally needs.
Also, the contract expires a month later than his liability is due. This means he should offset the contract by closing it out in August soon as he has made his payment. This will allow him to stay hedged till August. If he does not sell out of the contracts, he will become exposed to a long position for one month till the contract settles, a risk which is unnecessary for him.
Therefore Choice 'b' is the best answer.

NEW QUESTION: 2
Which of the following statements are TRUE regarding R3LOAD ABAP Data Export/Import?
There are 2 correct answers to this question
A. Efficient data compression
B. Implementation is database and platform specific
C. Table Splitting for multiple data process
D. Requires syntax check for heterogeneous data import
Answer: A,B

NEW QUESTION: 3

A. System Configuration
B. Shared Folders
C. File Server Resource Manager (FSRM)
D. Computer Management
E. Disk Management
F. File Explorer
G. Server Manager
H. Storage Explorer
Answer: G
Explanation:
Either use PowerShell Remoting to Nano1 and use "Enable-DedupVolume" cmdlet, however ,there is no suchchoice for this question; orFrom Server1, connect it's server manager to remotely manage Nano1 and enable Data Deduplication forvolumes on Nano1https://channel9.msdn.com/Series/Nano-Server-Team/Server-Manager-managing- Nano-Server

NEW QUESTION: 4
Which of the following is the correct location of License Verification Library (LVL) in Android SDK?
A. <android- sdk>/extras/google/play_licensing/library/
B. <android- sdk>/google/play_licensing/library/
C. <android- sdk>/extras/google/play_licensing/
D. <android- sdk>/extras/play_licensing/library/
Answer: A