Your firm is faced with paying a variable rate debt obligation with the expectation that interest rates are likely to go up. Identify two strategies using interest rate futures and interest rate swaps that could reduce the risk to the firm
What will be an ideal response?
Answer: Sell a futures position. If rates change the payoff from the futures position offsets the gain or loss on the variable rate debt obligation. Swap a variable rate debt obligation for a fixed futures payable contract.
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Publicity differs dramatically from advertising, but it typically costs much more than advertising
Indicate whether the statement is true or false
Which of the following does NOT support the retail layout objective of maximizing customer exposure to products?
A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store's mission with the careful positioning of the lead-off department.