Question

One argument for hedging by American Barrick was - it would make funds available when there...

One argument for hedging by American Barrick was - it would make funds available when there are attractive investment opportunities available. Do you agree? Explain

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hedging means to invest in a way so as to reduce the risk while making that investment.

American barrick is a gold mining company which hedges its gold in a way where it can have financial stability and proper management of the risk.

Hedging is done by American barrick where it can make financial predictions, predictions related to volatility and fluctuations of gold prices in order to move ahead with proper planning.

All this helps the company in investing at only those places where there are great opportunities. So, yes the above said argument is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
52. Benefits of CDS: A. Hedging interest rate risk, A long positioning vehicle that does not...
52. Benefits of CDS: A. Hedging interest rate risk, A long positioning vehicle that does not require an initial cash outlay, Access to maturity exposures not available in the cash market B. Hedging exchange rate risk, A short positioning vehicle that does require an initial cash outlay, Access to maturity exposures not available in the cash market C. Hedging credit risk, A short positioning vehicle that does not require an initial cash outlay, Access to maturity exposures not available in...
if a firm has discounts available and would need to borrow funds to pursue the discounts,...
if a firm has discounts available and would need to borrow funds to pursue the discounts, should it do so? Why or why not?
Make an economic argument (just one) on why a proposal to lower payroll taxes is a...
Make an economic argument (just one) on why a proposal to lower payroll taxes is a good thing or a bad thing. (The point here is to have you make an economic argument, not whether you think the policy proposal is good or bad.)
**My Professor asked us to write ONE paragraph explaining our reasoning/why we chose whichever argument** New...
**My Professor asked us to write ONE paragraph explaining our reasoning/why we chose whichever argument** New York is one of the largest cities in the world. There has been a debate as to whether you can find two people in New York with the same number of hair on their head. Take only one of two positions. 1. If you agree that there exists two people with the same number of hair, present a sound argument for this position. 2....
The role of a bank is to move funds from savers to spenders. What happens when...
The role of a bank is to move funds from savers to spenders. What happens when savings rates are too high? An example would be people saving so much money that the banks cannot keep up? Would you agree that the United States is in that situation now? What could the Federal Reserve do to help solve that problem?
"Enterprise funds should not be permitted to accumulate unrestricted net position, since to do so would...
"Enterprise funds should not be permitted to accumulate unrestricted net position, since to do so would indicate overpricing of its services." Do you agree? Why or why not?
When you develop an application, you must choose one of the available transport-layer protocols. How do...
When you develop an application, you must choose one of the available transport-layer protocols. How do you make this choice? And, if you have to provide secure transmission for this application data, how it can be achieved?
When would you use a report deck? What considerations would you make when deciding if a...
When would you use a report deck? What considerations would you make when deciding if a report deck should be used or not?   Explain a time when you would not want to use a report deck.
1. Many states have mandatory use of masks when outside and when one is not being...
1. Many states have mandatory use of masks when outside and when one is not being able to practice social distancing guidelines yet the federal government just recently got on board with this requirement. In your opinion, why do you think this is the case? 2. Another big argument by critics about special interest groups is that their system can really be effective only for economic reasons. It is also believed that these groups would ignore the interests of the...
When you are asked to construct an ethical argument, what do you consider that to mean?...
When you are asked to construct an ethical argument, what do you consider that to mean? Explain and discuss with other whether there are objective or subjective standards for ethical arguments.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT