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An Australian exporter WA Co. will receive 5.47 million Chinese yuan (CNY) from a Chinese importer Sing Tao in one year, WA Co. analyses the

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An Australian exporter WA Co. will receive 5.47 million Chinese yuan (CNY) from a Chinese importer Sing Tao in one year, WA Co. analyses the different hedging strategies (forward, money market and options) using the market Information in the following Table 1 to minimise its exchange rate risk for the Australian dollar (A$) cash flow. TABLE 1 TABLE 1 For Chinese yuan (CNY) Spot rate A$0.4913/CNY One-year forward rate A$0.5916/CNY One-year CNY deposit and borrowing rate 8.0216 One-year call options Exercise price . A$0.58 Premium = A$0.04 One-year put options Exercise price - A$0.60 Premium = A$0.06 For Australian dollar (AS) Spot rate CNY3.3472/A$ One-year forward rate CNY2.0568/4$ One-year A$ deposit and borrowing rate 4,814 One year call options Exercise price = CNY2.14 Premium = CNYO.18 One year put options Exercise price = CNY1.57 Premium = CNYQ.12 1. Calculate the A$ proceeds from the forward hedging strategy based on the information In Table 1. (enter the whole number without sign and symbol. 2. Calculate the AS proceeds for the money market hedging strategy using the market information in Table i. (enter the whole number without sign and symbol) 3. Calculate the minimum A$ proceeds for the options hedging strategy based on the market information in Table 1. (enter the whole number without sign and symbol) 4. After analysing the different hedging strategies, WA Co. found that none of these hedging strategies (forward, money market and options] provides the expected A$ proceeds and wants to receive A$ rather than CNY in one year. Therefore, WA Co. proposed Sing Tao to pay WA Co. A$2.70 million instead of the initial an agreed amount of CNY5.47 million As an importer before signing a new agreement, Sing Tao analyses the different hedging strategies using the market information in Table 1 to minimise its exchange rate risk for the payment of A$2.70 million. What is the CNY costs for the forward hedging strategy based on the Information in Table 1? (enter the whole number without sign and symbol) 5. What is the CNY costs for the money market hedging strategy based on the information in Table 17 (enter the whole number without sign or symbol) 6. Calculate the maximum CNY coats for the options hedging strategy using the information in Table 1

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