Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Evaluation of money-market hedge
Expected receipt after 3 months = $300000
Dollar interest rate over three months = 5.4/ 4 = 1.35%
Dollars to borrow now to have $300000 liability after 3 months = 300,000/ 1.0135 = $296004
Spot rate for selling dollars = 1.7820 + 0.0002 = $1.7822 per £
Sterling deposit from borrowed dollars at spot = 296004/ 1.7822 = $166089
Sterling interest rate over three months = 4.6/ 4 = 1.15%
Value in 3 months of sterling deposit = 166089 × 1.0115 = $167999
The forward market is slightly preferable to the money market hedge for the dollar receipt expected after 3 months.
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit?
What is Share exchange Predator company offers their shares in exchange for target company's shares. So target shareholders become part of predator shareholders and so have
Eurodollar U.S. currency held on deposit in banks located outside the United States, mainly in Europe. Eurodollars are mostly used for settling international transactions outs
What is the decision rule for accepting or rejecting proposed projects when using internal rate of return? Whenever the internal rate of return is equal or greater than to the
Question: Part A The financial system is complex in structure and function throughout the world. There are many different types of institutions: banks, insurance compani
'A' Priori Probability This is a probability computed by rationally examining existing information. A priori probability can most simply be explained as making a conclusion on
Introduction When financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds from these underlying
Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi
Disclaimer of Opinion - Statement by an AUDITOR indicating inability to express an opinion on the fairness of FINANCIAL STATEMENTS provided and reason for the inability. The audito
Discuss the benefits and drawbacks of maintaining multiple manufacturing sites like a hedge against exchange rate exposure. Answer: To set up multiple manufacturing sites can
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd