D 1. A US based exporter has a cost of $135 per item she exports. If...
D 4. A US investor can invest $100 in the US or in Japan. The US interest rate is 4.5% and the Japanese interest rate is 3.1%. The current exchange rate is $1 US buys 12.5 Yen, and the investor believes the future exchange rate will be 12.2 Yen. Then the US investment yields a future value of ___US dollars and the Japanese investment yields _ US dollars. 102.5; 105.64 102.5; 103.50 104.5; 103.50 104.5; 105.64
A US investor can invest $100 in the US or in Japan. The US interest rate is 4.5% and the Japanese interest rate is 3.1%. The current exchange rate is $1 US buys 12.5 Yen, and the investor believes the future exchange rate will be 12.2 Yen. Then the US investment yields a future value of ____ US dollars and the Japanese investment yields ____ US dollars. a)102.5; 105.64 b)102.5; 103.50 c)104.5; 103.50 d)104.5; 105.64
A US based exporter has a cost of $70 per item it exports. If the exchange rate is $1 US buys 5.5 Euros, what is the minimum price in Euros that this exporter can charge for his product in Europe and still cover his costs? Please explain, thank you! 375 379 385 395
D 2. A US investor is considering investing in Mexico. The exchange rate today is $1 US buys 5 Pesos, the Mexican interest rate is 6%, and the investor expects that the future exchange rate will be $1 US buys 3.75 Pesos. Then what is the future value of a $100 investment, in US dollars? $141.33 $150.50 $155.55 $164.55
no need to answar this Part 1 One-choice questions (4' for each ques 1. Please choose the quotation which is direct ou A in Germany USD1 = FUR1.4567 C in US USD 1 AUD 1.1625 hich is direct quotation Bin UK GBPUSDI 6752 D in France EUR USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and exp the risk of loss due to a...
Part 1 One-choice questions (4' for each 1. Please choose the quotation which is direct A in Germany USD = EUR1.4567 In US USD 1 - AUD1.1625 $14' for each question) on which is direct quotation Bin UK GBPUSD1.6752 Din France EURI USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and en e risk of loss due to a devaluation of the pound stering...
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...
Volkswagen's Hedging Strategy 1. Why did Volkswagen suffer a 95% drop in its 4th quarter, 2003 profits? 2. Do you think the Volkswagen’s decision to hedge only 30% of its anticipated U.S. sales was a good? Why or why not? 3. Do you think the Volkswagen’s decision to revert back to hedging 70% of its foreign currency exposure was a good decision? Why or why not? Embraer and the Wild Ride of the Brazilian Real 4. Is a decline in...
1. John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option was exercised was $1.32. Assume John bought the Euro from the market if the option was exercised. Also assume that there are 100,000 units in a Euro option. What was John’s net profit on the call option? Baylor Bank believes the New Zealand dollar will appreciate over the next 20 days from $.50 to...