Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A U.S. company has committed to pay 9 million kronor to a Swedish company in one year. What is the cost in present values of

image text in transcribed
image text in transcribed
A U.S. company has committed to pay 9 million kronor to a Swedish company in one year. What is the cost in present values of covering this Hability by buying kronor forward? The Swedish Interest rate is 1.2. and exchange rates are shown in Table Cost Forsand Rates Abbreviation Spor 3 Months 6 Mouth 1 Year Europe: Euro EURO 1.1758 11800 1.1815 1.1916 CZK 215 21. 21.549 21.15 Cech Republic konina) Hungary (forint HUF 267.23 265 703 26/138 261 520 Poland Cloty PLN 1.5773 . 3.5668 3.5618 Russian ruble RUB 58.879 59.53 60.205 61501 Sweden SEK 1976 845 CHF 90059 93222 97501 96089 Switzerland (franc Det Kondom (po GRP 1.1.11 LU 1.47 1.3520 Americas: Hranlal BRI 664 264 Canada (dollar) CAD 1.2831 1.2851 1.2811 1.2820 Cle CUP A. ASI A6.67 6.09.14 Mexico MXN 19.131 19.117 19.725 20.371 Pacific/Middle Band/Africa: Australia (dotlar AUD 1.3077 1.3052 1.3081 13081 CNY 6.62 6.6941 61668 Inca INK 41 64355 65407 66.676 Israel (shekel ILS 3.514 3.5010 3.4854 3.4511 Japan (yes) JPY 11261 111.94 109.99 New Zealand (dollar) NZD 1.4 14312 1:4323 1:339 South Africa (rand) ZAR 13.150 13.365 13.355 13.942 Nouth Korea (wow KRW 1.0992 1.0873 1.085.7 1.082.1 Turkey Cra) TRY 3.5676 3.9739 4.0899 43306

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bitcoin Cash What You Need To Know About Bch

Authors: Alexander O. M.

1st Edition

1976721229, 978-1976721229

More Books

Students also viewed these Finance questions