User Account

All Pages

An advantage of netting of multinational corporation

Assignment Help Financial Management
Reference no: EM131562477

1. A put option on Japanese yen is written with a strike price of ¥95.00/$. Which spot exchange rate will maximize your profit if you choose to exercise the option?

a. ¥85.00/$

b. ¥90.00/$

c. ¥100.00/$

d. ¥115.00/$

And why?

2. An advantage of netting of a multinational corporation and its subsidiaries is that it:

a. increases foreign exchange risk.

b. decreases the total volume of inter-subsidiary fund flows.

c. increases the total amount of currency conversion.

d. decreases the number of employees.

And why?

Reference no: EM131562477

Questions Cloud

Expected long-run growth rate for this stock : If the expected long-run growth rate for this stock is 4.25 percent and if investors require an 18 percent rate of return, what is the price of the stock today?
Interest rates on eurodollar loans may be lower : Interest rates on Eurodollar loans may be lower than those on loans in the U.S. because:
Call option with strike price less than current spot price : A call option with a strike price less than the current spot price is said to be _____.
Transfer pricing has been used by multinational corporation : Transfer pricing has been used by multinational corporation to.
An advantage of netting of multinational corporation : An advantage of netting of a multinational corporation and its subsidiaries is that it:
What will be the value of the pound payable in us dollars : What will be the value of the pound payable in U.S. dollars, if the U.S. firm exercises the option?
Arithmetic average return on each stock over period : What was the arithmetic average return on each stock over this period?
Case study taco bell and how to build a business case : Case study "Taco Bell" and "How to Build a Business Case" Build a business case template
According to the approximate covered interest parity : what must the one-year forward rate ($/pound) be according to the approximate covered interest parity?

Reviews

Write a Review

Financial Management Questions & Answers

  The firm finances using only debt and common equity

The firm finances using only debt and common equity and its total assets equal total invested capital.

  Sold next round to break even on the product

how many units of product Buzz would need to be sold next round to break even on the product?

  Required by law to report to potential borrowers

Tai Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?

  Consider binomial model

Consider a binomial model S(0) = 100 and r = .001 and two possible return values m1 = .005 and m2 = −.003. Find the value of a European call with expiry time at step 50 and strike price X = 105. Use the Gaussian approximation of the binomial distribu..

  Represents the rate of flow of money in dollars per year

The function ?f(x)=1400x-200x^2 represents the rate of flow of money in dollars per year. Assume a? 10-year period at 4?% compounded continuously. Find? (A) the present? value, and? (B) the accumulated amount of money flow at t=10.

  Time value of money concepts including compounding

Define and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts?

  Is this decision to give the rebate wise one

Heavy Duty Company, a manufactured of power tools, decides to offer a rebate of $130 on its 16-inch mid-range chain saw, which currently has a retail price $490. The profit margin for Heavy Duty before the rebate is $180. Based on the information, is..

  What is expected year-end dividend

The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend. D_1?

  Make semiannual payments and are priced at par value

Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six years to maturity, whereas Bond Dave has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the perce..

  Service produced by surgeon and nurses in operation room

What differences you can see in the product /service produced by a surgeon and nurses in the ‘operation room’ of a hospital for a patient, and a product/service produced by a professor and students in a class room environment. As a student what is yo..

  Components of traditional balance sheet

The following items are components of a traditional balance sheet. How much is the total assets of the firm?

  Acquisition the expected dividend amount will increase

Glimmering Inc. is planning to acquire Lasserocks. After the acquisition the expected dividend amount will increase by $1,300,000 every year in perpetuity. At the moment Glimmering's shares trade for $160 and there are 980,000 shares outstanding. Las..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd