ABC is a US company that just bought goods from a french company for 500 million euros with payment fue in 4 months assume the following

tion Completion Status: 99 100 22 2 23 140 150 160 170 180 190 200 21 31 110 120 130 8 24 QUESTION 21 6% p.a. ABC is a US company that just bought goods from a French company for 500 million euros payment due in 4 months. Assume the following: Spot rate $1.30/ 4 month forward rate $1.31/ 4 month French interest rate 8% p.a. 4 month US interest rate 4 month call option on euros at a strike price of $1.29/ with a 3% premium 4 month put option on euros at a strike price of $1.305/ with a 4% premium The proceeds of the forward market hedge are Under $400 million Between $400 million and $480 million Between $480 million and $520 million Between $520 million and $ $640 million Between $640 million and $652 million Over $652 million QUESTION 22 The proceeds of the money market hedge are Under $400 million Between $400 million and $480 million Between $480 million and $520 million Between $520 million and $ $640 million Between 5640 million and 5652 million Over $652 million QUESTION 23 The future value of the appropriate premium is Click Save and submit to save and submit. Click Save All Aromalla QUESTION 23 The future value of the appropriate premium is? Under $16 million Between $16 million and $19 million Between $19 million and $20 million Between $20 million and $21 million Between $21 million and $22 million Over $22 million O QUESTION 24 The breakeven exchange rate between the forward market hedge and your option alternative is Under $1.241 Between $1.24/ and $1.26/ Between $1.26/ and $1.28/ Between $1.28/ and $1.30/ Between $1.30/ and $1.32/ Over $1.32/ QUESTION 25 Which of the following statements are correct The French company has transaction risk A call alternative tells you the maximum you will have to pay Both statements A and B are false Both statements A and B are true Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers