Bobcat Company. Bobcat Company US-based manufacturer of industrial equipment, just purchased a Korean company that produces plastics and the forest The purchase press 000 six months. The current spot rate is Won 1105 and the month forwardes W1755 The more Korean won wreste is 10 perwm, the more Serveis per a este restoran on won with a Won 2005 has a 30% premium while the 6-month put option at the same has 2 premium Bobcat can invest at the rates given above or borrow at 2 per un above these stes Bobcats weighted average cost of capital is 10% Compare and may be the change How much in US dollars Bobcat pay in 6 months without a hegee weted spettate in 6 months and to be on 1057 W17557 b. How much in US dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in US dollars will Bobcat pay in 6 months with a money market hedge d. How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is sumed to be less than Vent 2005? To be Won 1.2009 e. What do you recommend? a. How much in US dollars will Bobcat pay in 6 months without a hedge the expected spot rate in 6 months stuned to be Won t 11057 (Round to the nearest cent) How much in US dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Wont. 1758 (Round to the nearest cent) b. How much in US dollars wilBobcat pay in 6 months with a forward market hed94? (Round to the nearest cent) c. How much in US dollars wil Bobcat pay in 6 months with a money market hedge? (Round to the nearest cent) d. How much in US dollars wil Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months issued to be less than 2005 (Round to the nearest Cent) How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be Won t 30057 Round to the nearest Cent) What do you recommend? (Select from the drop-down menu) The provides the lowest certain cost hedging method for payment settlement money market hedge forward market hedge hedged position stion market hedge Bobcat Company. Bobcat Company, US-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purch six months. The current spot rate is Won 1.110/5 and the 6-month forward rate is Won 1,175/5 The 6-month Korean won interest rate is 16% per annum, the 6-month US dollar rate is 4% per on won with a Won 1 200/5 strike rate has a 30% premium while the 6-month put option at the same strike rate has a 24% premium Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 10% Compare alternate ways below that Bobcat might .. How much in US dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1.110/5? Won 1,175/57 b. How much in US dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in US dollars will Bobcat pay in 6 months with a money market hedge? d. How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won 1.200/$? To be Won 1,3005? e. What do you recommend? just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won 500 milion Won 1.000 milion has already been paid, and the remaining Wons milions doen 1755. The 6-month Korean won interest rate is 16% per annum, the 6-month US dollar rate is 4% per annum Bobcat can invest at these interest rates, or borrow at 2 perannum above these mes Amorth caption at the same strike rate has a 24% premium es Bobcat's weighted average cost of capital is 10% Compare alternate ways below that Bobcat might deal with its foreign exchange exposure spot rate in 6 months is assumed to be Won 1.110/57 Won 1.175/? ected spot rate in 6 months is assumed to be less than Wont 20015? To be Wont,300/5? spot rate in 6 months is assumed to be Won 1.11015? spot rate in 6 months is assumed to be Won t 175/5? xpected spot rate in 6 months is assumed to be less than Won 120015? 2 Bobcat Company. Bobcat Company US-based manufacturer of industrial equipment, just purchased a Korean company that produces plastics and the forest The purchase press 000 six months. The current spot rate is Won 1105 and the month forwardes W1755 The more Korean won wreste is 10 perwm, the more Serveis per a este restoran on won with a Won 2005 has a 30% premium while the 6-month put option at the same has 2 premium Bobcat can invest at the rates given above or borrow at 2 per un above these stes Bobcats weighted average cost of capital is 10% Compare and may be the change How much in US dollars Bobcat pay in 6 months without a hegee weted spettate in 6 months and to be on 1057 W17557 b. How much in US dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in US dollars will Bobcat pay in 6 months with a money market hedge d. How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is sumed to be less than Vent 2005? To be Won 1.2009 e. What do you recommend? a. How much in US dollars will Bobcat pay in 6 months without a hedge the expected spot rate in 6 months stuned to be Won t 11057 (Round to the nearest cent) How much in US dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Wont. 1758 (Round to the nearest cent) b. How much in US dollars wilBobcat pay in 6 months with a forward market hed94? (Round to the nearest cent) c. How much in US dollars wil Bobcat pay in 6 months with a money market hedge? (Round to the nearest cent) d. How much in US dollars wil Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months issued to be less than 2005 (Round to the nearest Cent) How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be Won t 30057 Round to the nearest Cent) What do you recommend? (Select from the drop-down menu) The provides the lowest certain cost hedging method for payment settlement money market hedge forward market hedge hedged position stion market hedge Bobcat Company. Bobcat Company, US-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purch six months. The current spot rate is Won 1.110/5 and the 6-month forward rate is Won 1,175/5 The 6-month Korean won interest rate is 16% per annum, the 6-month US dollar rate is 4% per on won with a Won 1 200/5 strike rate has a 30% premium while the 6-month put option at the same strike rate has a 24% premium Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 10% Compare alternate ways below that Bobcat might .. How much in US dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1.110/5? Won 1,175/57 b. How much in US dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in US dollars will Bobcat pay in 6 months with a money market hedge? d. How much in US dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won 1.200/$? To be Won 1,3005? e. What do you recommend? just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won 500 milion Won 1.000 milion has already been paid, and the remaining Wons milions doen 1755. The 6-month Korean won interest rate is 16% per annum, the 6-month US dollar rate is 4% per annum Bobcat can invest at these interest rates, or borrow at 2 perannum above these mes Amorth caption at the same strike rate has a 24% premium es Bobcat's weighted average cost of capital is 10% Compare alternate ways below that Bobcat might deal with its foreign exchange exposure spot rate in 6 months is assumed to be Won 1.110/57 Won 1.175/? ected spot rate in 6 months is assumed to be less than Wont 20015? To be Wont,300/5? spot rate in 6 months is assumed to be Won 1.11015? spot rate in 6 months is assumed to be Won t 175/5? xpected spot rate in 6 months is assumed to be less than Won 120015? 2