Finance 2 Essay Example | Topics and Well Written Essays - 1000 words

Finance 2 - Essay Example sales and purchase agreements or decisions in the ‘futures market to develop a known price level’ and mainly ‘to offset the risk exposure and to limit themselves from any price fluctuations’. (investopedia.com) Although the future and forward hedging through future and forward contracts respectively are almost similar in nature yet there is one main difference between the two. Forward Contracts are made for fairly large transactions whereas future contracts are reached for smaller amounts. The large organizations such as multinational or supranational companies, large financial or investor groups may involve themselves in forward contract hedge. Monet market Hedge is an internal hedging technique which refers to â€Å"borrowing and lending transactions to eradicate currency risk by locking the particular variables related to foreign exchange and cash equivalents.† (Kofi Bofah) Currency Option is another instrument utilized by investors or corporations to hedge against negative fluctuations, volatility or movements in foreign exchange rates. In simple words, I can say that Currency Option is an agreement through which the holder f currency has the ‘right to involve in buying or selling of currency at a specified time period.’ For instance, in our case, Hybat Corporation can hedge against foreign currency risk by purchasing a currency option put or call. If it believes that USD/HUF rate is going to fall from 250 to 200 meaning that it will become more expensive for US Hybat to convert its export revenues from HUF to Dollar and send it to its parent company so Hybat would want to buy a ‘put option’. Similarly, if the rate is going to increase from 181 to 200, then Hybat would want to buy a â€Å"call option on USD/HUF so that  it could  stand to gain from an increase in the exchange rate† (or the  USD rise). (Investopedia.com) You must independently justify the credit rating for each category given. That is, if you use these catagories, they

Public School Funding Essay Example | Topics and Well Written Essays - 1500 words

Public School Funding - Essay Example Consequently, there is a need to examine what the major problems within the education system are. If the nations' students are lacking solid support from this very important system, then their future may also be in danger. Results also show students are leaving high school with very little understanding of the core subjects thus rendering them unprepared for college life. (O'Neil, 2002) One of the most difficult issues to deal with in education is its funding. The funding process needs to be made in such a manner that it ensures effectiveness, efficiency and fairness. In the US, schools are funded though local taxes generated for property taxes. The use of such a method has generated a lot of controversy between different stakeholders within the education system. However, this particular essay will focus on parents and the role that they can play in reforming public education system funding. A number of experts have asserted that utilizing property taxes is ineffective owing to the fact that children coming from rich districts generate more property taxes since their homes have a higher value while those ones from poorer districts have to contend with less amounts of finance for schooling. This means that schools within this poor districts lack adequate resources, are more crowded and therefore yield poorer results. Through the property tax system, the amount of money spent on each student within the public system can vary from one thousand five hundred dollars to about fifteen dollars in other districts. There is a grave disparity between these systems and it can be seen clearly that the education system favors children from wealthy background while limiting the opportunities available to those from low income households. (Linn, 2005) Some people argue that funding is just a small portion of the problems within the education system. However, the fact of the matter remains that schools cannot run without finances and no people understand this more than parents who provide the reason for having these institutions as well. In urban districts classified as low income, it is common to find homes that cost as little as four thousand dollars. On the other hand in suburban and wealthy districts, one is likely to find houses that go for as much as four hundred thousand dollars. From this comparison, it can be seen that the amount of taxes raised by the latter communities are much higher than those ones raised by the former ones. As if this is not enough, poorer neighborhoods are taxed a little more than their counterparts but this effort has not paid off owing to the fact that the amount garnered is quite low and providing higher tax rates only serve to add more pressure in low income households without reflecting this on school performance. Issues are further compounded by the fact property taxes are treated as deductions and this means that wealthy families can therefore get portions of that tax back from the federal government. Because houses in wealthy suburbs are much higher than in other residential areas, then the amount of tax refunds is much higher. This means that wealthier parents have greater finances at their disposals and they can therefore make more contributions towards important public services such as education. In the end, people from low income households are unable to generate high amounts of money to fund their schools and this minimizes the quality of their education