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Hello. I need assistance with the following 9 questions. The answers are straight-forward and can be determined with standard calculations, no need for inferences. GED

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Hello. I need assistance with the following 9 questions. The answers are straight-forward and can be determined with standard calculations, no need for inferences.

image text in transcribed GED corporation, located in the United States, has an accounts payable obligation of YEN750 million payable in one year to a bank in Tokyo. The current spot rate is YEN116/$1.00 and the one year forward rate is YEN109/$1.00. The annual interest rate is 3 percent in japan can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 centers per yen. - - - - At what one-year rate would GED be indifferent between money market hedging and forward market hedging? o YEN 115/$1.00 o YEN 116.28/$1.00 o YEN 112.72/$1.00 o YEN 109/$1.00 The future dollar cost of meeting this obligation using the money market hedge is o $6,545,400 o $6,450,000 o $6,653,833 o $6,880,734 The maximum future dollar cost of meeting this obligation using the call option hedging is o $6,450,000 o $6,653,833 o $6,880,734 o $6,545,400 The future dollar cost of meeting this obligation using the forward hedge is At what one-year spot rate would GED be indifferent between money market hedging and option market hedging? Dell is selling 30,000 units in Europe at an average price of EURO 1,500 per unit. Both the spot and forward exchange rates are $1.20/EURO. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for dell computers in Europe is = 1.5. - - What is the delta for Dell's dollar profit assuming zero pass through? o 0 o 6.0 o 10 o 3.6 What are respectively the delta and exposure for dell's dollar profit when passthrough = 0.8? o delta=1.98; exposure=EURO 24.75 million o delta=2.09; exposure=EURO 26.09 million o delta=2.58; exposure=EURO 32.19 million o delta=5.74; exposure=EURO 71.69 million - - Consider a depreciation of Euro (relative to US Dollar) from $1.20/EURO to $1.08/EURO and assume zero passthrough. What is Dell's dollar profit exposure and how to hedge it using forward? o $20 million; buy $20 million forward o $45 million; buy $45million forward o EURO 45 million; sell EURO 45 million forward o EURO 20 million; sell EURO 20 million forward Consider a depreciation of Euro (relative to US dollar) from $1.20/EURO to 1.08/EURO. Now assume passthrough = 0.8. What is Dell's total profit in $

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