GoTranscript Audio Test Answers July 19, 2022
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There are 10 reasons to consider hedging. One is to reduce your short term cash flow volatility. Another is to maximize return on capital for whatever the investors target level of risk is. A lots of big chunks of benefits are achieved. If, if you successfully reduce cashflow both Hilty the biggest one being that the risk of bankruptcy is is reduced, which, which not only reduces the cost of borrowing, but also makes lenders more willing to lend you any money to begin with. Furthermore, more accurate in earnings forecasting is is possible when hedging a company with more predictable earnings will in general be more or valued by investors. If your company uses hedging to withstand short term price movements.
its management can then focus the energy more fully on the company's core competencies, doing what they are best at. Some people don't like the idea of hedging against price fluctuations, because they feel that in some ways, it's it's a lot like gambling. Well, those people are what we in the financial advisor trade called dim bulbs. And it's not true talk. Show gambling increases your risk profile by making a bet on cross pricing limits. But by hedging you, Mr. or Miss Smarty Q pants are doing the exact opposite your efforts to reduce the risk profile of your organization and don't have some preconceived notion that the the odds are somehow in your favor. By the way, how do you like my use of that word efforting in the previous paragraph.
Your spell checker might be telling you it's not a real word. And before today, I would have agreed with that spell checker. However, on my way home from my gym fitness 19 I heard a newscaster using it in a story about 911. Now, we're coming up on the 20th anniversary of that sad day. So I really appreciated that reporter using a bogus word to to distract me from the fields I was feeling any way when the strike price with option is equal to the current market price of a share. That option is referred to as an at the money options. For example, with Pay Pal share price is 1500 bucks, and the call or put option is also $1,500. It's called an at the money option. As you probably know, all else being equal, the further the option is in the money more profitable that option will get.
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This audio is used for the transcriber test at GoTranscript.
GoTranscript Audio test answers 2022
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