Assignment Questions

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Hello everyone,

 

Can anyone help me answer these questions please. Thanks!

 

1- What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization? How could an organization needing Euros in six months protect itself from currency fluctuations?

 

 

2- Discuss the upside and the downside potential of options from both the perspective of the writer of the option and the buyer of the option. How and why are these the same or different?

 

 

 

3- What’s the different between debt financing and equity financing?  The following link shows the current US surplus / deficit (i.e. debt financing), how long do you think the government can continue to spend like this?  What can be done to reverse this situation? 

 

http://www.usdebtclock.org/

 

 

 

 

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