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111 Homework: Chapter 10 Homework Question 1, Problem 10-4 (algorithmic) Part 1 of 7 HW Score: 0%, 0 of 10 points O Points: 0 of

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111 Homework: Chapter 10 Homework Question 1, Problem 10-4 (algorithmic) Part 1 of 7 HW Score: 0%, 0 of 10 points O Points: 0 of 2 P&G India. Procter and Gamble's affiliate in India, P&G India, procures much of its toiletries product line from a Japanese company. Because of the shortage of working capital in India, payment terms by Indian importers are typically 180 days or longer. P&G India wishes to hedge an 8.2 million Japanese yen payable. Although options are not available on the Indian rupee (Rs), forward rates are available against the yen. Additionally, a common practice in India is for companies like P&G India to work with a currency agent who will, in this case, lock in the current spot exchange rate in exchange for a 4.88% fee. Using the exchange rate and interest rate data in the popup window, compare alterate ways below that P&G India might deal with its foreign exchange exposure. Assume a 360-day financial year. b. How much in Indian rupees will P&G India pay in 180 days with a forward market hedge? c. How much in Indian rupees will P&G India pay in 180 days with a money market hedge? d. How much in Indian rupees will P&G India pay in 180 days with a currency agent hedge? e. What do you recommend? Save a. How much in Indian rupees will P&G India pay in 180 days without a hedge if the expected spot rate in 180 days is assumed to be V2.52003/Rs? 2.4262/Rs? V2.6416/Rs? a. How much in Indian rupees will P&G India pay in 180 days without a hedge if the expected spot rate in 180 days is assumed to be $2.52003/Rs? Rs (Round to the nearest whole number.) liate in India, P&G India, procures much of its toiletries product line from a Japanese compar s by Indian importers are typically 180 days or longer. P&G India wishes to hedge an 8.2 milli DA neda H Data table Part 1 of 7 ew an example Spot rate 180-day forward rate Expected spot, 180 days 180-day Indian rupee investing rate 180-day Japanese yen investing rate Currency agent's exchange rate fee P&G India's cost of capital Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print 2.52003/Rs 2.4262/Rs 2.6416/Rs Get more help. Done 8.41% 2.69% 4.88% 11.62% Clea

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