Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume that duke thompson fine foods inc. has an f

Assume that Duke Thompson Fine Foods Inc. has an FX operating exposure of -2.45 to...

70.2K

Verified Solution

Question

Finance

Assume that Duke Thompson Fine Foods Inc. has an FX operating exposure of -2.45 to the Euro. Which of the following statements is true?

S1: CEO Duke could hedge this exposure with operational hedging by moving some of his operating costs into EUR.

S2: CEO Duke could hedge his exposure with FX pass through, assuming that the price elasticity of demand for his product is very small.

Group of answer choices

S1 is correct and S2 is false

Both statements are correct

Both statements are false

S2 is correct but S1 is false

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Gio's Restaurants is considering a project with the following expected cash? flows: LOADING.... If the? project's...

Finance
Q

Calculate the covariance between variables X and Y. Is it a positive or negative relationship between...

Statistics
Q

On the first day after arriving in Australia for Christmas vacation, a University of Niagara student...

Medical Sciences
Q

Explain the term semiautonomous and the developmental relationships between the various plastid types – “how they...

Biology
Q

Use your knowledge of specific extensional definitional techniques, and of the distinction between extensional (denotative) definitions and...

Psychology
Q

Class: (Sanitary Engineering) The sewer design criteria and design methods and sewer lining?

Civil Engineering
Q

Sam feels that students score better on math tests that take place on Fridays The...

Statistics
Q

I know the answer is 55.7% but i dont know how to get there ...

Accounting
Q

Professor Instruction: Encircle the correct answer. 1. A b. sale c. order b. cash discounted...

Accounting
Q

A bank reconciliation is a. A formal financial statement that list all of the bank...

Accounting
Q

All of the following items are identifiable intangible assets, except: trade names copyrights patents goodwill...

Finance
Q

Please do the problem in EXCEL SPREADSHEET along with the FORMULAS; Refer Financial Management 16th...

Finance