![lambobacon9027](/avatars/10769.jpg)
lambobacon9027
13.12.2019 •
Business
Au.s. company, cary research, sold a super computer to the max planck institute in germany on credit and invoiced €10 million payable in six months. currently, the six-month forward exchange rate is $1.10/€ and the foreign exchange advisor for cray research predicts that the spot rate is likely to be $1.05/€ in six months.
(a) what is the expected gain/loss from the forward hedging?
(b) if you were the financial manager of cray research, would you recommend hedging this euro receivable? why or why not?
(c) suppose the foreign exchange advisor predicts that the future spot rate will be the same as the forward exchange rate quoted today. would you recommend hedging in this case? why or why not?
(d) suppose now that the future spot exchange rate is forecast to be $1.17/€. would you recommend hedging? why or why not?
Solved
Show answers
More tips
- F Family and Home What s That Noise When a Kettle Boils? The Science of Water and Steam...
- S Style and Beauty Ultimate Guide on How to Care for Suede Shoes...
- S Sport Running: How to Do It Right?...
- F Food and Cooking How to Cook Spaghetti Right – Secrets and Tips...
- P Philosophy Personal attitude towards Confession: how to prepare and undergo the procedure correctly?...
- H Health and Medicine Flu: How to Recognize It by the First Symptoms?...
- F Food and Cooking How to Sober Up Quickly? Important Facts and Tips...
- H Health and Medicine How to Properly Take a Blood Sugar Test?...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
Answers on questions: Business
- B Business The Technical Services Department of Georgia State University leased a photocopy machine for $1,500 per month plus $0.04 per copy. Additional budgeted variable operating costs...
- M Mathematics How do u find the circumfrance and area of a circle by only knowing the radius?...
- M Mathematics Geometry Problem please help ASAP...
- B Business Acompany has beginning inventory of 10 units at a cost of $10 each on february 1. on february 3, it purchases 20 units at $12 each. 12 units are sold on february 5. using the...
Ответ:
not cool man
Step-by-step explanation: