What does 'term cost' mean?

[Shelley]

Business English Lesson, Advanced Level

ESL/EFL Test #296 "Optimal hedging", question 1

The article, 'Optimal Hedging and Foreign Exchange Risk', by Nancy Beneda, illustrates the technique of computerized optimization and ......... modeling to manage foreign exchange risk, and the results indicate that a lower level of risk can be achieved, given a specified level of expected hedging cost, from using optimization modeling.

(a) simulacrum
(b) simulation
(c) stimulation
(d) stimulus

Business English Lesson, Advanced Level

ESL/EFL Test #296 "Optimal hedging", answer 1

The article, 'Optimal Hedging and Foreign Exchange Risk', by Nancy Beneda, illustrates the technique of computerized optimization and simulation modeling to manage foreign exchange risk, and the results indicate that a lower level of risk can be achieved, given a specified level of expected hedging cost, from using optimization modeling.

Correct answer: (b) simulation
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Term Cost, is that best described as the value of an item at a given time? If not what is it and

When a client has dwfaulted on repayments and the bank needs to sell the property, what is that calleed. Foreclosure?

Shelley

[Mister Micawber]

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I would think that 'term cost' was cost over a given length of time (cf. 'long-term cost', 'short-term cost'). Foreclosure is repossession of the property from the defaulting client-- the bank can then do what it wishes with the property, though it does indeed usually re-sell it.
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Native English teacher at Mister Micawber's