Pros and cons of hedging
Describe the pros and cons of hedging versus not hedging the risk. Use an example where possible.
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As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payments are to cease in the event of Fred's or Tammy's death or in the event of Tammy's remarriage.
Hedging is often referred to as a means of dealing with risk. Describe some techniques that fall under this concept that could help you deal with an anticipated price increase.
Select a social problem where free markets are not allowed to function and describe how free market features could be introduced to help alleviate the problem.
LO.1 Sophie creates an irrevocable trust, income interest to her granddaughter, Brandi, for six years. After six years, the remainder interest in the trust is to go to Hailey, Sophie's divorced daughter (Brandi's mother).
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