I am a US chocolate importer who is importing Belgian chocolate from Belgium worth € 100,000 and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker: Spot rate is: $1.1000 – $ 1.1100 / € The Belgium interest rates are: 3.0 % - 3.4 % annually and US interest rates are: 2.1 % – 2.5 % annually. Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

Afirm plans to begin production of a new small appliance. the manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. either of two processes could be used for in-house production; process a would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and process b would have an annual fixed cost of $175,000 and a variable cost of $8 per unit. determine the range of annual volume for which each of the alternatives would be best. (round your first answer to the nearest whole number. include the indifference value itself in this answer.)