Micca Metals, Inc. Micca Matals, Inc. is a speciality materials and metals company located in Detrot, Michigan. The company specializes in specific precious metals and materials that are used in a vanety of pigment applications in many industries including cosmetics, appliances, and a variety of high tinsel metal fabricating equipment Micca just purchased a shipment of phosphates from Morocco for 6,500,000 dirhams, payable in se months Sti-month cal options on 6,500,000 dirhams at an exercise price of 11.40 dirhams per dolar are available from Bank Al-Maghrub at a premium of 17%. Six-month put options on 6,500,000 dirhams at an exercise price of 11 40 dirhams per dolar are available at a premium of 3.3%. Using the exchange rate and interest rate data in the popup window.compare alternate ways below that Micca might hedge its foreign exchange transaction exposure 2. How much in US dollars will Micca pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be 11. 40 dirhams per dollar? 11.80 dirhams per dolar b. How much in US dollars will Micca pay in 6 months with a forward market hedge? C. How much in US dollars wil Micca pay in 6 months with a money market hedge? 4. How much in US dollars will Micca pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than 11.40 dirhams per dollar? e. What is your recommendation? a. How much in US dollars will Micca pey in 6 months without a hedge it the expected spot rate in 6 months is assumed to be 11.40 Grhams per doller? $(Round to the nearest cent) Data Table Assumptions Shipment of phosphates from Morocco, Moroccan dirhams Micca's cost of capital (WACC) Spot exchange rate, dirhams/ 6-month forward rate, dirhams/S 6-month interest rate for borrowing, Morocco (per annum) 6-month interest rate for investing, Morocco (per annum) 6-month interest rate for borrowing, U.S. (per annum) 6-month interest rate for investing, U.S. (per annum) Values 6,500,000 15.00% 11.40 11.80 9.50% 8.50% 7.50% 6.50% Micca Metals, Inc. Micca Matals, Inc. is a speciality materials and metals company located in Detrot, Michigan. The company specializes in specific precious metals and materials that are used in a vanety of pigment applications in many industries including cosmetics, appliances, and a variety of high tinsel metal fabricating equipment Micca just purchased a shipment of phosphates from Morocco for 6,500,000 dirhams, payable in se months Sti-month cal options on 6,500,000 dirhams at an exercise price of 11.40 dirhams per dolar are available from Bank Al-Maghrub at a premium of 17%. Six-month put options on 6,500,000 dirhams at an exercise price of 11 40 dirhams per dolar are available at a premium of 3.3%. Using the exchange rate and interest rate data in the popup window.compare alternate ways below that Micca might hedge its foreign exchange transaction exposure 2. How much in US dollars will Micca pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be 11. 40 dirhams per dollar? 11.80 dirhams per dolar b. How much in US dollars will Micca pay in 6 months with a forward market hedge? C. How much in US dollars wil Micca pay in 6 months with a money market hedge? 4. How much in US dollars will Micca pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than 11.40 dirhams per dollar? e. What is your recommendation? a. How much in US dollars will Micca pey in 6 months without a hedge it the expected spot rate in 6 months is assumed to be 11.40 Grhams per doller? $(Round to the nearest cent) Data Table Assumptions Shipment of phosphates from Morocco, Moroccan dirhams Micca's cost of capital (WACC) Spot exchange rate, dirhams/ 6-month forward rate, dirhams/S 6-month interest rate for borrowing, Morocco (per annum) 6-month interest rate for investing, Morocco (per annum) 6-month interest rate for borrowing, U.S. (per annum) 6-month interest rate for investing, U.S. (per annum) Values 6,500,000 15.00% 11.40 11.80 9.50% 8.50% 7.50% 6.50%
