Venture Entrepreneurship and Entrepreneurial Ventures: Study Material and Assignments

BUSINESS INFO
Venture Entrepreneurship
Entrepreneurial Ventures
Name of the author

Table of Contents
Answer to the question no-1.......................................................................................................................2
TRUE OR FALSE............................................................................................................................................2
Answer to the question no-2.......................................................................................................................2
MULTIPLE CHOICE QUESTIONS....................................................................................................................2
Answer to the question no-3.......................................................................................................................2
OPEN ENDED QUESTIONS............................................................................................................................2
What ethical and labour-related issues are a major challenge to footwear and clothing in the
International Market?..............................................................................................................................2
What is LIBOR rate?.................................................................................................................................3
Answer to the question no-4.......................................................................................................................3
CASE STUDY.................................................................................................................................................3
Compute the future dollar costs of meeting this obligation using the money market hedge and the
forward hedges........................................................................................................................................3
Assuming that the forward exchange rate is the best predictor of the future spot rate, compute the
expected future dollar cost of meeting this obligation when the option hedge is used..........................3
At what future spot rate do you think PCC may be indifferent between the option and forward hedge?
.................................................................................................................................................................3
REFERENCES................................................................................................................................................4

Answer to the question no-1
TRUE OR FALSE
QUESTION TRUE/FALSE JUSTIFICATION
1. True It is analyzed that in a bullish
market, the maximum loss
would be the premium paid or
loss of interest on the invested
capital.
The potential profit will be
higher in case if the market is
bullish. It will result to higher
profit as higher the market and
there will be high differences
between the exercised price
and shares sold price
Bariviera, et al, 2016).
2. False In the short term, profit will be
low as market price of the
shares will be less increased.
3. False There are several measures or
methods such as performance
guarantees, creating arbitrage
profit and creating shield by
using the hedge funding
(Abrantes-Metz, et al. 2011).