I want to know if so far is correct and what i need to do next to finish off the table.
60% TH Sha Format Tools Table Window Help @sue. Group 4 (0) Draw Design Layout References Mailings Review View Acrobat >> Tell me mes New... 12 - A Aav T 1 ADA Styles Styles Pane 4) In order to answer the next question, you need to fill in future values in the following table. Dictato Create Adob You are importing new coffee makers from Germany. You will have to pay 2 million euros for the next shipment in 90 days. The current spot price of the curo is 1.1735 S/euro, and the 90-day euro forward rate is 1.1737 S/SF. Note, euro futures and options are for 125,000 SF per contract. Future Values Tables 5% depreciation in No Change in spot 5% appreciation in euro, S/euro- rates, Sleure euro, Sleure _1.114825 1.1735 in 90 days _1.232175 Value of 2 million 2,229,650 2,347,000 2,464,350 euro payable Value of 447400 400 247400 futures contracts Sum of futures 2677050 2347400 2711750 plus payable Value of 20.8 20.8 20.8 (number and type) Options English (United States) 362 words Focus 1 MacBook Pro 999 54 98 19 o Format Tools Table Window Help ve Group 4 (0) Draw Design Shar Layout References Mailings Review View Acrobat >> Tell me !!! 21 C imes New..12 - - A A Aa A DA Styles Styles Pare Dictate Create Adobe Sum of options plus payable Money Market Hedge DI a) Calculate the S/euro exchange rates for a 5% appreciation and depreciation of the curo in the top row b) Finish filling in the second row; show how much in dollar terms the cure payable will be worth to your company given changes in the curo (note the sign). Focus 362 words English (United States) MacBook Pro DOO . $ 4 % 5 & 7 8 6 9 60% Tell me SI Format Tools Table Window Help 55. Group 4 (1) Design Layout References Mailings Review View Acrobat >> es New.. 12 - A A Aav A EEEE IU albX X .Ar E DE Draw Styles Styles Pane Dictate Create Ad a) Calculate the Sleuro exchange rates for a 5% appreciation and depreciation of the curo in the top row. b) Finish filling in the second row; show how much in dollar terms the curo payable will be worth to your company given changes in the euro (note the sign) c) Enter (as a positive or negative) the number of futures contracts you plan to buy or sell to fully hedge your exposure in the euro. Ignoring interest from marking-to-market, fill the 3 row with future values of these contracts (be careful). What will be your total future value (including the receivable) under cach scenario given this transaction? Put that in the labeled row. a) Instead of hedging your exposures with futures, you consider hedging with options. Enter in the first column the number and type of options you plan to use to fully hedge this exposure. Assume options with a 1.17 strike price maturing in 90 days currently cost 1.3 cents per curo. Further, assume that the WACC of your company is 9% per year. Fill in cach of the future values. What will be your total future value (including the payable) under each scenario given this transaction? Put that in the labeled row. Does your company do better with an appreciation or depreciation if you use this hedge? Focus 17 3 62 words English (United States) MacBook Pro 60% TH Sha Format Tools Table Window Help @sue. Group 4 (0) Draw Design Layout References Mailings Review View Acrobat >> Tell me mes New... 12 - A Aav T 1 ADA Styles Styles Pane 4) In order to answer the next question, you need to fill in future values in the following table. Dictato Create Adob You are importing new coffee makers from Germany. You will have to pay 2 million euros for the next shipment in 90 days. The current spot price of the curo is 1.1735 S/euro, and the 90-day euro forward rate is 1.1737 S/SF. Note, euro futures and options are for 125,000 SF per contract. Future Values Tables 5% depreciation in No Change in spot 5% appreciation in euro, S/euro- rates, Sleure euro, Sleure _1.114825 1.1735 in 90 days _1.232175 Value of 2 million 2,229,650 2,347,000 2,464,350 euro payable Value of 447400 400 247400 futures contracts Sum of futures 2677050 2347400 2711750 plus payable Value of 20.8 20.8 20.8 (number and type) Options English (United States) 362 words Focus 1 MacBook Pro 999 54 98 19 o Format Tools Table Window Help ve Group 4 (0) Draw Design Shar Layout References Mailings Review View Acrobat >> Tell me !!! 21 C imes New..12 - - A A Aa A DA Styles Styles Pare Dictate Create Adobe Sum of options plus payable Money Market Hedge DI a) Calculate the S/euro exchange rates for a 5% appreciation and depreciation of the curo in the top row b) Finish filling in the second row; show how much in dollar terms the cure payable will be worth to your company given changes in the curo (note the sign). Focus 362 words English (United States) MacBook Pro DOO . $ 4 % 5 & 7 8 6 9 60% Tell me SI Format Tools Table Window Help 55. Group 4 (1) Design Layout References Mailings Review View Acrobat >> es New.. 12 - A A Aav A EEEE IU albX X .Ar E DE Draw Styles Styles Pane Dictate Create Ad a) Calculate the Sleuro exchange rates for a 5% appreciation and depreciation of the curo in the top row. b) Finish filling in the second row; show how much in dollar terms the curo payable will be worth to your company given changes in the euro (note the sign) c) Enter (as a positive or negative) the number of futures contracts you plan to buy or sell to fully hedge your exposure in the euro. Ignoring interest from marking-to-market, fill the 3 row with future values of these contracts (be careful). What will be your total future value (including the receivable) under cach scenario given this transaction? Put that in the labeled row. a) Instead of hedging your exposures with futures, you consider hedging with options. Enter in the first column the number and type of options you plan to use to fully hedge this exposure. Assume options with a 1.17 strike price maturing in 90 days currently cost 1.3 cents per curo. Further, assume that the WACC of your company is 9% per year. Fill in cach of the future values. What will be your total future value (including the payable) under each scenario given this transaction? Put that in the labeled row. Does your company do better with an appreciation or depreciation if you use this hedge? Focus 17 3 62 words English (United States) MacBook Pro
