Business, 27.04.2021 15:10 juancarlosguevpdppo5

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$. Information for Forward Contract:
Forward exchange rate (one yr): 1.54 $/BP
Information for Money Market Instruments (MMI):
Current exchange rate: 1.50 $/BP
Investment return at Aerion Fund Management (in UK): 4% annual
Interest rate of borrowing from Bank of America (in USA): 2% annual
Information you need for Currency Options Contract:
Options premium: 0.015 $/BP
Interest rate of borrowing from Bank of America (USA): 2% annual
Allowed to exercise options at 1.54 $/BP
Let's suppose you signed the Currency Options Contract. The actual exchange rate at the time of the payment is 1.50 $/BP. What would you do?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 07:50, pattydixon6

The questions of economics address which of the following ? check all that apply

Answers: 3

continue

Business, 22.06.2019 10:40, emojigirl5754

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Answers: 2

continue

Business, 22.06.2019 19:00, sharri44

Read the scenario. alfonso is 19 years old and has a high school diploma. recently, he was promoted to assistant manager at the fast-food restaurant where he has worked since the age of sixteen. his dream is to become the restaurant’s manager. what is his best option for achieving his dream? he should find another job and work his way up to a higher position. he should hope that his manager transfers to another location and that he is his replacement. he should attend classes at the local college to receive training in management. he should work hard, work longer hours, and remain assistant manager.

Answers: 2

continue

Business, 22.06.2019 20:30, Roof55

When patey pontoons issued 4% bonds on january 1, 2018, with a face amount of $660,000, the market yield for bonds of similar risk and maturity was 5%. the bonds mature december 31, 2021 (4 years). interest is paid semiannually on june 30 and december 31?

Answers: 1

continue

You know the right answer?

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$....