subject
Business, 06.05.2020 05:46 lilly9240

Use the following information to calculate the lowest dollar cost to hedge and pay a 200,000 GBP payable due in 180 days. Calculate the cost using a money market hedge, and a forward contract hedge. Assume the firm has no excess cash. The current spot rate of the GBP is GBP USD 2.02, the 180-day forward rate is GBP USD 2.00. The GBP interest rate is 5% on deposits, and the USD interest rate is 5% for borrowing and 2% for deposits. All interest is for 180 days. Dollar cost is defined as the total USD required to satisfy the payable in 180 days. Lowest Dollar Cost to Hedge and pay is:

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 17:40, kimutaitanui2228
Which of the following best explains cost-push inflation? a. increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. b. consumers demand goods faster than they can be supplied, increasing competition among buyers. c. rising prices for goods and services reduce spending power and cut into consumer demand. d. wages drop so that workers have to spend a higher percentage of income on the cost of necessities.2b2t
Answers: 1
image
Business, 22.06.2019 19:40, cieloromero1
Moody corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. at the beginning of the year, the company made the following estimates: machine-hours required to support estimated production 100,000 fixed manufacturing overhead cost $ 650,000 variable manufacturing overhead cost per machine-hour $ 3.00 required: 1. compute the plantwide predetermined overhead rate. 2. during the year, job 400 was started and completed. the following information was available with respect to this job: direct materials $ 450 direct labor cost $ 210 machine-hours used 40
Answers: 3
image
Business, 22.06.2019 20:30, lareynademividp0a99r
The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.
Answers: 3
image
Business, 23.06.2019 00:40, pleasehelp5334me2
Oliver queen buys 100 shares of stock in green arrow archery corporation, a publicly traded company with which he is not affiliated as a director, officer, or employee. he then sells his 100 shares to john diggle. the sec sues oliver because he didn't register the sale of stock to john. who wins? oliver, because the sale falls into the nonissuer exemption oliver, because the sale falls into the private placement exemption the sec, because the transaction is not exempt from registration the sec, because even exempt transactions must be registered with the sec
Answers: 3
You know the right answer?
Use the following information to calculate the lowest dollar cost to hedge and pay a 200,000 GBP pay...

Questions in other subjects:

Konu
Chemistry, 19.09.2019 11:50