Maria Gonzalez and Ganado. Ganadothe US-based company discussed in this chapter-has concluded another large sale of telecommunications equipment to Regency (UK) Total payment of E3 200,000 is due in 90 days Maria Gonzalez has also learned that Ganado vill only be able to borrow in the United Kingdom at 13.887% per annum (due to credit concerns of the British banks). Given the exchange rates and interest rates in the popup window..compare alternate ways below that Ganado might hedge ts foreign exchange transaction exposure. Assume a 360-day financial year, 3. How much in US dollars vil Ganado receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of $1,7677/? The 90-day forward tate of $1.7498/? The expected spot rate of 51 7954? 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 hede? e. What transaction eposure hedge is now in Ganado's best interest? a. How much in US dollars will Ganado receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of $17677/? $Round to the nearest dolar) Assumption 90-day A/R in pounds Spot rate (S/) 90-day forward rate (S/) 3-month U.S. dollar investment rate 3-month US dollar borrowing rate 3-month U.K. investment interest rate 3-month U.K. borrowing interest rate Ganado's WACC Expected spot rate in 90 days (S/E) Put options on the British pound: Strike rate ($/) Put option premium Strike rate (S/E) Put option premium Value 3,200,000 $1.7677 $1.7498 6.777% 9.584% 8.210% 13.887% 12.733% $1.7954 $1.7400 1.5% $1.7100 1.0% Maria Gonzalez and Ganado. Ganadothe US-based company discussed in this chapter-has concluded another large sale of telecommunications equipment to Regency (UK) Total payment of E3 200,000 is due in 90 days Maria Gonzalez has also learned that Ganado vill only be able to borrow in the United Kingdom at 13.887% per annum (due to credit concerns of the British banks). Given the exchange rates and interest rates in the popup window..compare alternate ways below that Ganado might hedge ts foreign exchange transaction exposure. Assume a 360-day financial year, 3. How much in US dollars vil Ganado receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of $1,7677/? The 90-day forward tate of $1.7498/? The expected spot rate of 51 7954? 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 hede? e. What transaction eposure hedge is now in Ganado's best interest? a. How much in US dollars will Ganado receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of $17677/? $Round to the nearest dolar) Assumption 90-day A/R in pounds Spot rate (S/) 90-day forward rate (S/) 3-month U.S. dollar investment rate 3-month US dollar borrowing rate 3-month U.K. investment interest rate 3-month U.K. borrowing interest rate Ganado's WACC Expected spot rate in 90 days (S/E) Put options on the British pound: Strike rate ($/) Put option premium Strike rate (S/E) Put option premium Value 3,200,000 $1.7677 $1.7498 6.777% 9.584% 8.210% 13.887% 12.733% $1.7954 $1.7400 1.5% $1.7100 1.0%
