Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canvas GB 511332.180 None of the above Question 18 3 pts You are a sales manager for Google Nexus and export cellular phones from the

image text in transcribed
Canvas GB 511332.180 None of the above Question 18 3 pts You are a sales manager for Google Nexus and export cellular phones from the United States to other countries. You have just signed a deal to ship phones to a British distributor. The deal is denominated in pounds, and you will receive 900,000 when the phones arrive in London in 1 year. Assume that you can borrow and lend at 7% pain U.S. dollars and at 10% p.a. in British pounds. Both interest rate quotes are for one year. The spot exchange rate is $1.4945/, and the 1 year forward exchange rate is $1.4802/. You decide to hedge the risk with a money market hedge (synthetic forward contract). What is the money market hedge dollar revenue? $1,308,367 $1.031,878 $1,036,140 $1,332,180 None of the above Question 19 1 pts You are a sales manager for Google Nexus and export cellular phones from the United States to other countries. You have just signed a deal to ship phones to a British distributor. The deal is denominated in pounds, and you will receive 900,000 when the phones arrive in London in 1 year. Assume that you can borrow and lend at 7% pain US dollars and at 10%p.a. in British pounds. Both interest rate quotes are for one year. The spot exchange rate is $1.4945/E, and the 1 year forward exchange rate is $160 Ydecide to bad this with many market de synthetic forward.content. Which of the alternative

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

Step: 3

blur-text-image

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

Military Finances Personal Money Management For Service Members Veterans And Their Families

Authors: Cheryl Lawhorne-Scott, Don Philpott

1st Edition

144222214X, 978-1442222144

More Books

Students also viewed these Finance questions