User Account

All Pages

Future dollar cost of meeting obligation

Assignment Help Finance Basics
Reference no: EM131412728

XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. The future dollar cost of meeting this obligation using the money market hedge is PLEASE SHOW WORK-STEP BY STEP

A. $6,450,000.

B. $6,545,400.

C. $6,653,833.

D. $6,880,734.

Reference no: EM131412728

Questions Cloud

Financial information for apple computer : Financial Information for Apple Computer can be found on Yahoo.com/finance (Symbol: AAPL). You will find information under financials for the balance sheet and income statement for three years.
Translate statements into symbolic form- action programs : Translate the following statements into symbolic form using capital letters to represent affirmative English statements.- If affirmative action programs are dropped, then if new programs are not created, then minority applicants will suffer.
Determine what people think about who won the debate : Generate a set of questions to be able to put that opinion into context, comprising questions about political party identification, strength of partisanship, education, gender, age, and income.
How the founders effect can lead to a descendant population : Explain how the founders effect can lead to a descendant population that differs greatly from its parent population over a relatively short period of time?
Future dollar cost of meeting obligation : XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. The future dollar cost of meeting this obligation using the money market hedge is PLEASE SHOW WORK-STEP BY STEP
Create a survey instrument to measure these three things : Following up from practice assignments 1 and 2, suppose you now believe that a sense of political empowerment (also thought of as political efficacy) may influence voter turnout (it does). Also suppose that trust in government influences turnout.
Yield in order for stanley brother : Stanley Roper has $2,200 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,700 in 4 years. What interest rate would the investment have to yield in order for Stanley's brother to del..
Impact of the media in defining : The video makes some assertions as to the impact of the media in defining what it means to be a "man" or a "woman." How have these stereotypes affected the view of gender roles in our society? Do you believe that your own self-image has been af..
What validity and reliability concerns did authors address : Answer the following questions: What is empowerment? What are the different dimensions of it? How is it measured in this study? What validity and reliability concerns did the authors address? What do they find about the instrument they created? Do..

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate your exposure b to the exchange risk compute the

suppose that you hold a piece of land in the city of london that you may want to sell in one year. as a u.s. resident

  What is bea unlevered beta

What is BEA's unlevered beta? Use market value D/S when unlevering.

  Current market value of lightning bond

If investors require a return equal to 6 percent to invest in similar bonds, what is the current market value of lightning's bond calculations.

  What is the t-ratio for exp

What is the t-ratio for EXP? Does it indidcate that experience is a statistically significant determinant of salary if a 95 percent confidence level is desired?

  Discuss the technical definition of money

Money has many definitions because it is used for different purposes. Discuss the technical definition of money and its contemporary relevance to the analysis of money supply.

  What was the return on the companys stock for the period

if during a period a company paid a dividend of 5 and the price per share was 60 at the beginning of the period and 75

  What is the market value of its common stock

If investors require a 15 percent rate of return to purchase Alphafem's common stock, what is the market value of its common stock?

  What is the amount of dividends received during the year

Kevin purchased a stock a year ago that pays a dividend. He has earned a 50%. The stock was purchased for $16 and is now worth $21. What is the amount of dividends received during the year?

  Why you think that they didnot follow this principle

If so, what are/were they? Please share with the class what they are/were and why you think that they didn't follow this principle.

  What special stipulations will you include

Will you create a will on your own or with an attorney's assistance? What special stipulations will you include?- Do you need to establish trusts or gifts to reduce your estate's tax liability?

  What is the pure expectations theory

What is the pure expectations theory? What does the pure expectations theory imply about the term structure of interest rates?

  Famas llamas has a weighted average cost of capital of 98

famas llamas has a weighted average cost of capital of 9.8 percent. the companys cost of equity is 15 percent and its

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