Question

1 Approved Answer

Posted on Sep 23, 2024

1 points Question 1 Your firm is a UK based exporter of bicycles You have sold an order to a Swiss fimm for SFt 1,000,000

1 points Question 1 Your firm is a UK based exporter of bicycles You have sold an order to a Swiss fimm for SFt 1,000,000 worth of bicycles Payment from the Swiss from in Swiss francs) is due in 12 months Detail a strategy using futures contracts that wil hedge your exchange rate nisk Have an estimate of how many contracts of what type and many USS Contact Sue Country Currency per USS Tuesday Monday Tuesday Monday 10,000 Batan (pound) $ 1.9600 $19-100 10.5102 E0.5155 5-1.9700 51.9500 forward EO 5076 EO 5128 3 months $ 19800 $1.9600 EO 5051 forward F05102 6 months forward 519000 51.9700 0.5025 0.5076 12 mantha $ 2.0000 SI9500 0.5000 0,5051 fond 10.000 Euro $ 15600 51 5400 06410 E06194 1 m $ 15700 51 5500 606169 06153 forward 3 min $ 15800 51 5600 0.629 06410 forward 6 min 51500 SI 5700 0629 06 ford 12 $ 16000 51 5800 c06320 Oo - SI SP 1810 Question Completion Status: $ 2.0000 $1.9800 EO 5000 0.5051 $ 1.5600 $ 1.5700 SI 5400 $1 5500 0 6410 0 6369 0.6194 0.6452 S 1.5800 S 1 5600 0.6329 0.6410 $ 1.5900 $15700 0.6289 0.6369 $ 1.6000 $1 5800 06250 months forward 10.000 Euro 1 month forward 3 months forward 6 months forward 12 months forward SFr. 10,000 Swiss franc 1 month forward 3 months forward 6 months forward 12 months forward E06329 $ 0.9200 $0.9000 SFR 10570 SE 11111 $0.9400 $0.9200 SFr 10638 SFr. 10870 $0.9600 $0.9400 SF. 1.0417 SF 10615 $0.9800 $0.9600 SFr. 1.0204 SE 1.0417 $ 1.0000 50.9500 SF 10000 SFr. 1.0204 Go short 100 12 month Swiss franc futures contracts and long 50 12-month pound futures contracts O Golong 100 12 month Swiss franc futures contracts and short 50 12 month pound futures contracts. Go short 100 12 month Swiss franc futures contracts and short 50 17 month pound futures contracts 1 points Question 1 Your firm is a UK based exporter of bicycles You have sold an order to a Swiss fimm for SFt 1,000,000 worth of bicycles Payment from the Swiss from in Swiss francs) is due in 12 months Detail a strategy using futures contracts that wil hedge your exchange rate nisk Have an estimate of how many contracts of what type and many USS Contact Sue Country Currency per USS Tuesday Monday Tuesday Monday 10,000 Batan (pound) $ 1.9600 $19-100 10.5102 E0.5155 5-1.9700 51.9500 forward EO 5076 EO 5128 3 months $ 19800 $1.9600 EO 5051 forward F05102 6 months forward 519000 51.9700 0.5025 0.5076 12 mantha $ 2.0000 SI9500 0.5000 0,5051 fond 10.000 Euro $ 15600 51 5400 06410 E06194 1 m $ 15700 51 5500 606169 06153 forward 3 min $ 15800 51 5600 0.629 06410 forward 6 min 51500 SI 5700 0629 06 ford 12 $ 16000 51 5800 c06320 Oo - SI SP 1810 Question Completion Status: $ 2.0000 $1.9800 EO 5000 0.5051 $ 1.5600 $ 1.5700 SI 5400 $1 5500 0 6410 0 6369 0.6194 0.6452 S 1.5800 S 1 5600 0.6329 0.6410 $ 1.5900 $15700 0.6289 0.6369 $ 1.6000 $1 5800 06250 months forward 10.000 Euro 1 month forward 3 months forward 6 months forward 12 months forward SFr. 10,000 Swiss franc 1 month forward 3 months forward 6 months forward 12 months forward E06329 $ 0.9200 $0.9000 SFR 10570 SE 11111 $0.9400 $0.9200 SFr 10638 SFr. 10870 $0.9600 $0.9400 SF. 1.0417 SF 10615 $0.9800 $0.9600 SFr. 1.0204 SE 1.0417 $ 1.0000 50.9500 SF 10000 SFr. 1.0204 Go short 100 12 month Swiss franc futures contracts and long 50 12-month pound futures contracts O Golong 100 12 month Swiss franc futures contracts and short 50 12 month pound futures contracts. Go short 100 12 month Swiss franc futures contracts and short 50 17 month pound futures contracts