Principles of Corporate Finance_ 12th Edition

692 Part Eight Risk Management bre44380_ch26_673-706.indd 692 09/30/15 12:09 PM To hedge interest-rate risk, the CFO has to desi ...

Chapter 26 Managing Risk 693 bre44380_ch26_673-706.indd 693 09/30/15 12:09 PM The hedge is not zero-maintenance, however. You ca ...

694 Part Eight Risk Management bre44380_ch26_673-706.indd 694 09/30/15 12:09 PM Because the price of the farmer’s wheat is relat ...

695 bre44380_ch26_673-706.indd 695 09/30/15 12:09 PM Our wheat farmer sold wheat futures to reduce business risk. But if you wer ...

696 Part Eight Risk Management bre44380_ch26_673-706.indd 696 09/30/15 12:09 PM notched up losses of $2.3 billion. And in 1995 B ...

Chapter 26 Managing Risk 697 bre44380_ch26_673-706.indd 697 09/30/15 12:09 PM ● ● ● ● ● As a manager, you are paid to take risks ...

698 Part Eight Risk Management bre44380_ch26_673-706.indd 698 09/30/15 12:09 PM Three general articles on corporate risk managem ...

Chapter 26 Managing Risk 699 bre44380_ch26_673-706.indd 699 09/30/15 12:09 PM Convenience yield Calculate convenience yield for ...

700 Part Eight Risk Management bre44380_ch26_673-706.indd 700 09/30/15 12:09 PM Futures contracts List some of the commodity fu ...

Chapter 26 Managing Risk 701 bre44380_ch26_673-706.indd 701 09/30/15 12:09 PM Duration hedging Securities A, B, and C have the ...

702 Part Eight Risk Management bre44380_ch26_673-706.indd 702 09/30/15 12:09 PM Futures hedging Legs Diamond owns shares in a V ...

Chapter 26 Managing Risk 703 bre44380_ch26_673-706.indd 703 09/30/15 12:09 PM f. Suppose interest rates suddenly fall to 4%. The ...

704 Part Eight Risk Management bre44380_ch26_673-706.indd 704 09/30/15 12:09 PM The websites of the major commodities exchanges ...

Chapter 26 Managing Risk 705 bre44380_ch26_673-706.indd 705 09/30/15 12:09 PM Later you discover that RA has competition for Mad ...

706 Part Eight Risk Management bre44380_ch26_673-706.indd 706 09/30/15 12:09 PM ∙ A portfolio of Treasury notes with an average ...

● ● ● 27-1 The Foreign Exchange Market 707 bre44380_ch27_707-731.indd 707 09/30/15 12:10 PM T he last chapter grappled with risk ...

708 Part Eight Risk Management bre44380_ch27_707-731.indd 708 09/30/15 12:10 PM indirect quote for the Brazilian real shows that ...

Chapter 27 Managing International Risks 709 bre44380_ch27_707-731.indd 709 10/08/15 10:08 AM You could also say that the dollar ...

710 Part Eight Risk Management bre44380_ch27_707-731.indd 710 10/08/15 10:08 AM Interest Rates and Exchange Rates Suppose that y ...

Chapter 27 Managing International Risks 711 bre44380_ch27_707-731.indd 711 10/08/15 10:08 AM Therefore the expectations theory o ...