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Hi please help with a , b , c , and d . Kept getting it wrong. Thank you! Najafi Company. Najafi Company, U .

Hi please help with a, b, c, and d. Kept getting it wrong. Thank you!
Najafi Company. Najafi Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces
plastic nuts and bolts for heavy equipment. The purchase price was 7,300 million Korean won (KRW). KRW1,000 million has already
been paid, and the remaining KRW6,300 million is due in six months. The current spot rate is KRW1,111=USD1.00, and the 6-month
forward rate is KRW1,169= USD1.00. The 6-month Korean won interest rate is 15% per annum, the 6-month U.S. dollar rate is 3.5% per
annum. Najafi can invest at these interest rates, or borrow at 2% per annum above those rates. A 6-month call option on won with a
KRW1,200= USD1.00 strike rate has a 4.3% premium, while the 6-month put option at the same strike rate has a 3.8% premium. Najafi's
weighted average cost of capital is 10%. Compare alternate ways below that Najafi might deal with its foreign exchange exposure.
a. How much in U.S. dollars will Najafi pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be
KRW1,111= USD1.00? KRW1,169= USD1.00?
b. How much in U.S. dollars will Najafi pay in 6 months with a forward market hedge?
c. How much in U.S. dollars will Najafi pay in 6 months with a money market hedge?
d. How much in U.S. dollars will Najafi pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less
than KRW1,200= USD1.00? To be KRW1,300= USD1.00?
a. How much in U.S. dollars will Najafi pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be
KRW1,111= USD1.00?
USD (Round to the nearest cent.)
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