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AysviL [449]
2 years ago
14

XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank

in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of $0.012 per 100 yen. Assume that the forward rate is the best predictor of the future spot rate. The future dollar cost of meeting this obligation using the option hedge is If firm is considering a forward hedge what should it do?

Business
1 answer:
tamaranim1 [39]2 years ago
3 0

Answer and Explanation:

The answer is attached below

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2 years ago
Sam, Joe, Lynn, and Kori are four business colleagues traveling together on a business trip. There are four adjacent seats avail
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Answer:

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Explanation:

The constraints we have are two in number.

1. Sam and Kori cannot sit next to each other

2. Lynn and Kori need to sit next to each other.

Both options A and B satisfy both these constraints because Sam and Kori are seated apart and Lynn and Kori are seated together.

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6 0
3 years ago
Manuel wants to sell his new product in foreign countries but with the least amount of risk to himself and his business. what ma
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3 years ago
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3 0
3 years ago
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