Questions

Hedging is a tool to minimize the risks. It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done. Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss.

E.g. In Capital Markets, suppose an investor has an equity portfolio of Rs. 2 lacs and the portfolio consists of all the major stocks of NIFTY. He thinks the market will improve in the long run but might go on a downside in the shortrun. NIFTY today stands at 4300. To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs. 100. Thus, the actual amount paid is Rs. 5,000(lot size of NIFTY is 50). Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon. 

 Narendra Jadhav

A change to the Constitution is called as An Amendment.

An Amendment ::

An Amendment is ratified after two-thirds of the House and Senate approve of the proposal and send it to the states for a vote. That Convention can propose as many amendments as it deems necessary. Then, three-fourths of the states must affirm the proposed Amendment.

Nucleoli are present during Interphase.

Chromosomes become visible during Prophase.

Centromeres divide and sister chromatids become full-fledged chromosomes during Anaphase.

Spindle fibers attach to kinetochores during Prometaphase.

DNA is called the blueprint of life because it contains the instructions needed for an organism to grow, develop, survive and reproduce. DNA does this by controlling protein synthesis. Proteins do most of the work in cells, and are the basic unit of structure and function in the cells of organisms.

Phencyclidine (PCP) is a drug used for its mind-altering effects. It is also known as Angel dust. As a recreational drug, it is typically smoked, but may be taken by mouth, snorted, or injected. It may also be mixed with cannabis or tobacco.

Causes and Effects ::

* PCP may cause hallucinations, distorted perceptions of sounds, and violent behavior.

* Its effects include seizures, coma, addiction, and an increased risk of suicide.

The standard deduction of Rs. 40,000 is seek to provide relief to salaried tax payers in the Budget proposals in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses.