Hedging: Hedging against an investment risk is termed for strategically implementing the instruments and tools in the market to minimize the risk and effects of any adverse price movements. It can be said that investors are benefitted through hedging as they hedge one investment by making other investment. London Interbank Offered rate (LIBOR): The London Interbank Offered rate (LIBOR) is refers to the average interest rate enabling leading banks to borrow funds from other banks in the London Market. To calculate : LIBOR Rate as on December 31, 2013.

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Chapter 9.M, Problem M.7.3P

To determine

Hedging:

Hedging against an investment risk is termed for strategically implementing the instruments and tools in the market to minimize the risk and effects of any adverse price movements. It can be said that investors are benefitted through hedging as they hedge one investment by making other investment.

London Interbank Offered rate (LIBOR):

The London Interbank Offered rate (LIBOR) is refers to the average interest rate enabling leading banks to borrow funds from other banks in the London Market.

To calculate:

LIBOR Rate as on December 31, 2013.

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