Kyslet us be company that mature and water pucionet On April 11, the company oldawstem to the cay traga Madame Boy wated for the sum of Portons Theatewas priced hyen 28.000.000 with payment do in three months. The exchange rate and interest rate data are shown in the popup Monte di vary from the forward discounts on the yen because of time differences to the quotes. The spot VII, for example, is a midpoint range On Apr 11 the spot yen traded in London from 18652/5 YHTO Kystals Japanese compos recurrently borrowing you from Japanese banks at a pread of two percentage points above the Japanese money the Kystals weighted average cost of capital is 155. and the company wishes to protect the dollar value of this receivable options are available from Kyushu Bank call option on 20.000.000 at exerche price of 117.0005 a 1 premium or a put option on 128.000.000 exercise price of 117.0005 3.9% premium a. What are the costs and benefits of attive hedges? Which would you recommend and why? h. What is the break even revestimentate when comparing forward and money market leaves? Krystal Krystal is a US-based company that manufactures sols, and installs water purification equipment. On April 11, the company sold a system to the Chy of Nagasaki, Japan, for installation in Nagasakis famous Glover Gardens (where Puccini's Madame Butterly waited for the retum oft Pinkerton) The sale was priced in yen at 128.000.000, will payment due in three months. The exchange rate and interest rate data are shown in the popup Note that the interest rate differential vary from the forward discounts on the yen because of time differences for the quotes The 17 stor example is a potrage On Apr 11 the potentrated in London from 1118 62/5 to 117 0495 Krystals Japanese competitors are currently borowing yon from Japanese bankared of two percentage postove the Japanese mom krystal weighted average cost of capital 1555, and company wishes to protect the door value of this receivable month otions are valable from Kyushu Bank call option on 28 000 000 che price of 11700015 a prema popio on 21 000 000, ererche price of 1170008 239 mm What are the costs and benefits of alternative? Which would you recommand, and why? b. What is the break even reinventate comparing forward and money market attemates? a. How much in US dollars will Krystal receive in 3 months without a hedge the expected spot rate in 3 months assumed to be 111794057 Round to the nearest cont) Everycur answer in the answer box and then co Chane 5 11:17 AM OG ENG O Type here to search BI ASUS VivoBook MOLDAL un sulu a system to the City of Nagasaki, Japan, for in The exchange rate and Data Table ple, is a mid-point rang Japanese money rate xercise price of 1170 Spot exchange rate: 117.948/$ (closing mid-rates) 1-month forward rate: 117.404/5, a 5.56% per annum premium 3-month forward: 116.458/5. a 5.12% per annum premium 1-year forward 112.807/$, a 4.56% per annum premium Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Money Rates United States Japan Differential One month 4.9500% 0.09125% 4.85875% Three months 5.0000% 0.09375% 4.90625% Twelve months 5.1250% 0.31000% 4.81500% Click on the icon located on the top-night comer of the data table in order to copy its contents into a spreadsheet Print Done Kyslet us be company that mature and water pucionet On April 11, the company oldawstem to the cay traga Madame Boy wated for the sum of Portons Theatewas priced hyen 28.000.000 with payment do in three months. The exchange rate and interest rate data are shown in the popup Monte di vary from the forward discounts on the yen because of time differences to the quotes. The spot VII, for example, is a midpoint range On Apr 11 the spot yen traded in London from 18652/5 YHTO Kystals Japanese compos recurrently borrowing you from Japanese banks at a pread of two percentage points above the Japanese money the Kystals weighted average cost of capital is 155. and the company wishes to protect the dollar value of this receivable options are available from Kyushu Bank call option on 20.000.000 at exerche price of 117.0005 a 1 premium or a put option on 128.000.000 exercise price of 117.0005 3.9% premium a. What are the costs and benefits of attive hedges? Which would you recommend and why? h. What is the break even revestimentate when comparing forward and money market leaves? Krystal Krystal is a US-based company that manufactures sols, and installs water purification equipment. On April 11, the company sold a system to the Chy of Nagasaki, Japan, for installation in Nagasakis famous Glover Gardens (where Puccini's Madame Butterly waited for the retum oft Pinkerton) The sale was priced in yen at 128.000.000, will payment due in three months. The exchange rate and interest rate data are shown in the popup Note that the interest rate differential vary from the forward discounts on the yen because of time differences for the quotes The 17 stor example is a potrage On Apr 11 the potentrated in London from 1118 62/5 to 117 0495 Krystals Japanese competitors are currently borowing yon from Japanese bankared of two percentage postove the Japanese mom krystal weighted average cost of capital 1555, and company wishes to protect the door value of this receivable month otions are valable from Kyushu Bank call option on 28 000 000 che price of 11700015 a prema popio on 21 000 000, ererche price of 1170008 239 mm What are the costs and benefits of alternative? Which would you recommand, and why? b. What is the break even reinventate comparing forward and money market attemates? a. How much in US dollars will Krystal receive in 3 months without a hedge the expected spot rate in 3 months assumed to be 111794057 Round to the nearest cont) Everycur answer in the answer box and then co Chane 5 11:17 AM OG ENG O Type here to search BI ASUS VivoBook MOLDAL un sulu a system to the City of Nagasaki, Japan, for in The exchange rate and Data Table ple, is a mid-point rang Japanese money rate xercise price of 1170 Spot exchange rate: 117.948/$ (closing mid-rates) 1-month forward rate: 117.404/5, a 5.56% per annum premium 3-month forward: 116.458/5. a 5.12% per annum premium 1-year forward 112.807/$, a 4.56% per annum premium Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Money Rates United States Japan Differential One month 4.9500% 0.09125% 4.85875% Three months 5.0000% 0.09375% 4.90625% Twelve months 5.1250% 0.31000% 4.81500% Click on the icon located on the top-night comer of the data table in order to copy its contents into a spreadsheet Print Done