erieannapickett12
05.05.2020 •
Business
Se the following information to calculate the lowest dollar cost to hedge and pay a 200,000 GBP payable due in 180 days. Calculate the cost using a money market hedge, and a forward contract hedge. Assume the firm has no excess cash. The current spot rate of the GBP is GBP USD 2.02, the 180-day forward rate is GBP USD 2.00. The GBP interest rate is 5% on deposits, and the USD interest rate is 5% for borrowing and 2% for deposits. All interest is for 180 days. Dollar cost is defined as the total USD required to satisfy the payable in 180 days. Lowest Dollar Cost to Hedge and pay is:
Solved
Show answers
More tips
- F Family and Home What is a Smart Home System and How Does it Work?...
- F Food and Cooking Do Aphrodisiacs Really Work? Separating Fact from Fiction...
- C Computers and Internet Log-in: what is it and why do you need it?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
Answers on questions: Business
- E English Write a paper explaining the ethical use of information....
- M Mathematics As of June 2017, 1 US dollar is equivalent to about 133 Canadian dollars. If Tyler has 30.59 Canadian dollars, how many US dollars can he exchange this amount for?...
- B Business (b) Explain why employers often employ young females instead of young males2x2...
- M Mathematics Please solve this questiojm...
- S Social Studies Popular sovereignty means letting people decide A. True B. False...
- E English Charlie ends his April 14 (progress report 9) entry about Robinson Crusoe with the word Why . How does this word show that his thinking has changed? He has become...
- B Biology How could cell growth create a problem that is similar to a traffic jam?...
- M Mathematics For what values of a and m does f(x) have a horizontal asymptote at y = 2 and a vertical asymptote at x = 1? f (x) = StartFraction 2 x Superscript m Baseline Over...
- M Mathematics HELP PLZ ITS DUE IN A COUPLE OF MINUTES...
- M Mathematics What is the total surface area of the triangle prism shown...
Ответ: