Existent Circumstances
Refining company H wants to find the way to fix margin
Company H is located in U.S & is facing price risk exposure of crude oil price and gasoline product price
Business of company H includes both domestic sales & export of product
Annual gasoline production of Company H is 24,000,000 barrel
Consulting company has to consider various risks facing company H and suggest
risk, governments work to address threat to computer crime. For example, representatives of 29 countries - including Canada, Japan and the U.S. – signed the Council of Europe Cybercrime convention in 2001. The convention deals with substantive and procedural cybercrime law. The substantive defines the following activities as criminal: illegal access, illegal interception, data interference,
data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
3.2. SEC’s mainstream of hedging strategy; Natural hedge
3.2.1. M
risk sensitivity across institutions at a given point in time without introducing a certain degree of cyclicality in minimum capital requirements over time. The Committee was aware of this trade-off during the design of the Basel II framework and introduced a number of safeguards to address excess cyclicality of the minimum requirement. They include the requirement to use long term data horizons