against foreign exchange fluctuations. You have two things to take care of: Dividend \& Upcoming pavment. - Dividend is due on December 15th,2021. The dividend is from your subsidiary company in Germany. The amount is 2,000,000, considered as "receivables." - Upcoming payment to your supplier in Japan. The current trend is that Yen is around 78 and increasing. The price per unit is 6,000. And, you agreed to buy 200,000 units. The payment is due on September 10th,2021. - When your company borrow in the EURO currency, it typically borrows at "LIBOR +1% " - When your company lend in the EURO currency, it typically lends at "LIBID" - Use the following tables to assess alternative ways of hedging. a) EURO receivable (Dividend) in 305 days (Total 15 points): i) Collect information: (1) Spot rate \& Forward exchange rate (0.5 points) (2) Interest rate (0.5 points) (a) USD interest rate: BID \& ASK (b) EURO interest rate: BID \& ASK (3) Put option: Strike \& Premium (0.5 points) against foreign exchange fluctuations. You have two things to take care of: Dividend \& Upcoming pavment. - Dividend is due on December 15th,2021. The dividend is from your subsidiary company in Germany. The amount is 2,000,000, considered as "receivables." - Upcoming payment to your supplier in Japan. The current trend is that Yen is around 78 and increasing. The price per unit is 6,000. And, you agreed to buy 200,000 units. The payment is due on September 10th,2021. - When your company borrow in the EURO currency, it typically borrows at "LIBOR +1% " - When your company lend in the EURO currency, it typically lends at "LIBID" - Use the following tables to assess alternative ways of hedging. a) EURO receivable (Dividend) in 305 days (Total 15 points): i) Collect information: (1) Spot rate \& Forward exchange rate (0.5 points) (2) Interest rate (0.5 points) (a) USD interest rate: BID \& ASK (b) EURO interest rate: BID \& ASK (3) Put option: Strike \& Premium (0.5 points)