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kumpel [21]
2 years ago
11

Consider a US firm sells a gas turbine generator to a British firm; in March 201x for British pound BP 1,000,000. Payment is due

three months later in June 201x. The firm’s cost of capital is 12%. The following quotes are current in the market:1. spot rate: $1.764 per British pound2. 3-month forward rate: $1.754 per British pound3. 3-month interest rate for borrowing in U.K.: 2.5% Per quarter4. UK 3-month investment rate: 2.0% /quarter5. US 3-month borrowing rate: 2.0% /quarter6. US 3-month investment rate: 1.5% per quarter7. June put option in the over the counter market for British pound 1,000,000; strike price $1.71 (out-of-the money): 1% premium8. June put option on the Philadelphia Stock Exchange: a. British pound BP 31,250 per contract at strike price of $1.75 costb. 2.5 cents per pound premium, and brokerage cost $50 per contract9. the firm’s foreign exchange advisory service forecasts that the spot rate in three months will be $1.76 per pound.Show all your calculations of cost of the following alternatives:(i) Unhedged Position; (ii) Money Market Hedge; (iii) Forward market hedge; and (iv) Options Hedge;(Show your work. This means that No work is No credits)

Business
1 answer:
Varvara68 [4.7K]2 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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On January 1, 2021, PokemonGo Company leased equipment to Waldo Corporation under a lease agreement that qualifies as an operati
ankoles [38]

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Investment in bonds= 4,300,000

loss on investments (6,100,000-4,300,000= 1,800,000)

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Explanation:

how I know is bc I've been playing the moblie game and card game since it became popular also been hearing daily about the moblie game

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Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2021.
dedylja [7]

Solution :

Current Assets

Cash                                                                     $ 20,000

Accounts receivable                                           $ 1,30,000

Less: Allowance for uncollectible accounts     - $ 13,000

Note receivable                                                    $ 100,000

Interest receivable                                                $ 3,000

Marketable securities                                           $ 32,000

Raw materials                                                       $ 24,000

Work in process                                                   $ 42,000

Finished goods                                                    $ 89,000

Prepaid Rent(Half of $ 60,000)                    <u>      $ 30,000      </u>

Total current assets                                             $ 4,57,000

Current Liabilities

Deferred revenue ($36,000/2)                           $ 18,000

Accounts payable                                                $ 1,80,000

Interest payable                                              <u>     $ 5000           </u>

Total current liabilities                                          $ 2,03,000

Working capital (4,57,000 - 2,03,000)           $ 2,54,000

8 0
3 years ago
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