If BT had hedged its U.S. dollar interest rate swap with P&G, explain how BT would have lost twice when the deal collapsed
What will be an ideal response?
BT lost once when P&G refused to pay its side of the deal. If BT hedged the P&G deal, then any gains it made from P&G would have been offset (except for a small spread) by losses to its hedge counterparties. P&G's refusal to pay did not nullify BT's obligation to pay the counterparties with whom it hedged. Therefore, BT would have lost twice.
Business
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Which one of the following is often "local," "person-to-person," and likely to foster public debate on controversial issues?
A. Radio D. Television B. Newspapers E. Wire services C. Magazines
Business
How can we use current quantitative information to predict future political events, such as expropriation?
What will be an ideal response?
Business