Hi, can someone answer these questions for me please? Please let it be in your own words and not copied from anyother websites. Thanks.
1-What’s the different between debt financing and equity financing? The following link shows the current US surplus / deficit (i.e. debt financing), how long do you think the government can continue to spend like this? What can be done to reverse this situation?
2-The largest uninterrupted stretch of deficits came between 1970 and 1997. It’s hard to imagine that the United States will post a surplus anytime soon – will we give the 28 year stretch between 1970 and 1997 a run for its money?
Any idea who is purchasing all this debt?
3-What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization? How could an organization needing Euros in six months protect itself from currency fluctuations?
4-There are many variables that may cause problems with foreign exchange. There’s a political risk potential in some countries that may have certain political instabilities.
How / why might politics impact a countries currency
5-The seller (writer) has the obligation to either buy or sell stock (depending on what type of option he or she sold — either a call option or a put option) to the buyer at a specified price by a specified date.
Any idea what a “naked” call is?