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21 WONDY POWEREDE QUESTION 7 30 points Summit Wireless Technologies Inc is a Us, based provider of wireless sound technology for inteligent devices Summit Wireless

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21 WONDY POWEREDE QUESTION 7 30 points Summit Wireless Technologies Inc is a Us, based provider of wireless sound technology for inteligent devices Summit Wireless has recently acquired a Korean company for Won 6.200 Milion due in three month. The current spot rate is Won 1.130 /5, and the 3-month forward rate is Won 1.140/$. The 3-month Korean won Interest rate is 10% per annum, the 3-month U.S. dollarate is 3.8% per annum. Summit Wireless can also borrow money at 2% premium per annum above the interest rates. A 3-month call option on won with a Won 1.190/5 strike rate has a 4,8% premium, while the 3-month put option at the same strike ate has a 4% premium. Summit Wireless WACC-10% A How much in US dollars will Summit Wireless pay in 3 months with a forward market hedgo? B. How much in US dollars will Summit Wireless pay in 3 months with a money marvet hedge? C. How much in U.S. dollars will Summa Westets pay in 3 months with an option hedge of the expected spot rate in 6 months is assumed to be less than Won1,190/52 b. What do you recommend? (A, B, or C) QUESTIONS 10 point Dave Iverson is analyzing the recently released financial statement of Global Corp. a large multinational manufacturing company with production facies across Europe and Southeast Asia. The company's choice of functional currency is not disclosed, but Iverson does notice that Global Corp. does not have any cumulative translation adjustments (CTA) on its balance sheet What method of foreign translation is used for this company Why? For the toolbar.press ALT F10 (PC) or ALTFNF10 (Mac) B 1 VS Paragraph Arial 10pt LE

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