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Maria Gonzalez and Ganado. Ganado--the US-based company discussed in this chapter-has concluded another large sale of telecommunications equipment to Regency (UK) Total payment of 3.200,000

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Maria Gonzalez and Ganado. Ganado--the US-based company discussed in this chapter-has concluded another large sale of telecommunications equipment to Regency (UK) Total payment of 3.200,000 is due in 90 days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at 13887% per annum (due to credit concerns of the Brush banks). Given the exchange rates and interest rates in the popup window, m.compare alternate ways below that Ganado might edge its foreign exchange transaction exposure. Assume a 360-day financial year, a. How much in US dollars will Ganado receive in 90 days without a hedge the expected spot rate in 90 days is the same as the current spot rate of 51.7677/? The 90-day forward rate of 51 74922 The expected spot rate of $17954/? b. How much in US dollars wil Ganado receive in 90 days with a forward market hedge C. How much in US dollars will Ganado receive in 90 days with a money market hedge d. How much in US dollars wil Ganado receive in 90 days with an option market hedge? e. What transaction exposure hedge is now in Ganado's best interest a. How much in US dollars will Ganada receive in 30 days without a hedge if the expected spot robe in 90 days is the same as the current spot rate of $176777? Round to the nearest dollar) Assumption Value 90-day A/R in pounds 3,200,000 Spot rate ($/) $1.7677 90-day forward rate ($/) $1.7498 3-month U.S. dollar investment rate 6.777% 3-month U.S. dollar borrowing rate 9.584% 3-month U.K. investment interest rate 8.210% 3-month U.K. borrowing interest rate 13.887% Ganado's WACC 12.733% Expected spot rate in 90 days ($/) $1.7954 Put options on the British pound: Strike rate (S/) $1.7400 Put option premium 1.5% Strike rate (S/) $1.7100 Put option premium 1.0% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet Maria Gonzalez and Ganado. Ganado--the US-based company discussed in this chapter-has concluded another large sale of telecommunications equipment to Regency (UK) Total payment of 3.200,000 is due in 90 days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at 13887% per annum (due to credit concerns of the Brush banks). Given the exchange rates and interest rates in the popup window, m.compare alternate ways below that Ganado might edge its foreign exchange transaction exposure. Assume a 360-day financial year, a. How much in US dollars will Ganado receive in 90 days without a hedge the expected spot rate in 90 days is the same as the current spot rate of 51.7677/? The 90-day forward rate of 51 74922 The expected spot rate of $17954/? b. How much in US dollars wil Ganado receive in 90 days with a forward market hedge C. How much in US dollars will Ganado receive in 90 days with a money market hedge d. How much in US dollars wil Ganado receive in 90 days with an option market hedge? e. What transaction exposure hedge is now in Ganado's best interest a. How much in US dollars will Ganada receive in 30 days without a hedge if the expected spot robe in 90 days is the same as the current spot rate of $176777? Round to the nearest dollar) Assumption Value 90-day A/R in pounds 3,200,000 Spot rate ($/) $1.7677 90-day forward rate ($/) $1.7498 3-month U.S. dollar investment rate 6.777% 3-month U.S. dollar borrowing rate 9.584% 3-month U.K. investment interest rate 8.210% 3-month U.K. borrowing interest rate 13.887% Ganado's WACC 12.733% Expected spot rate in 90 days ($/) $1.7954 Put options on the British pound: Strike rate (S/) $1.7400 Put option premium 1.5% Strike rate (S/) $1.7100 Put option premium 1.0% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet

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