Need these questions completed within 1.5 hrs. NO LATER than that!

While you were visiting London, you purchased a Jaguar for 60,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.35% interest per month, compounding monthly, to pay for the car. Currently, the spot exchange rate is $1.45/ and the three-month forward exchange rate is $1.40/. In London, the money market interest rate is 5.0% for a three-month investment (periodic rate). There are two alternative ways of paying for your Jaguar. (a) Keep the funds at your bank in the U.S. and buy 60,000 forward. (b) Buy a certain pound amount spot today and invest the amount in the U.K. for three months so that the maturity value becomes equal to 60,000. Evaluate each payment method. Which method would you prefer? Why? 1 Keep your money in the US and use a forward contract to convert into . Pounds. Cost of this strategy is $83124 2 Convert your money into pounds and invest at the british pound rate . of 5% for 2 months. Cost of this strategy is $82857 3 Keep your money in the US and use a forward contract to convert into . pounds. Cost of this strategy is $81145 4 Convert into BP today and invest at the BP rate of 5% quarterly. Cost . is 80,064 Suppose that the treasurer of IBM has an extra cash reserve of $3,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Currently, the spot exchange rate is DM1.60 per dollar and the six-month forward exchange rate is DM1.56 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should he/she invest to maximize the return? 1 Invest in US and receive a future value of $3120000 in six . months 2 Invest in Germany and receive future value of . $3169230.77 in six months 3 Invest in US and receive 3195342 in six months . 4 Invest in Germany and recieve $319892.34 in six months . Diamond Bank expects that the Singapore dollar will depreciate against the dollar from its spot rate of $.43 to $.39 in 60 days. The following interbank lending and borrowing rates exist: Lending Rate Borrowing Rate U.S. dollar 7.0% 7.2% Singapore dollar 22.0% 24.0% Diamond Bank considers borrowing 15 million Singapore dollars in the interbank market and investing the funds in dollars for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Diamond Bank pursue this strategy? Yes Profit is 1,131,415.76 SD No there is a loss of 441252 USD Yes, Profit is 115121 SD Yes, Profit is $471231 USD You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is: a $.03. . b $.02. . c $.01. . d $.02. . e none of these . The spot rate of British pound is quoted at $1.49. The 90-day forward rate exhibits a 2% discount. What is the 90-day forward rate of the pound? a $1.52 . b $1.61 . c $1.46 . d $1.37 . An EXPORTER based in Japan has a 1,000,000 receivable due in one year. Spot and forward exchange rate data is given in the table: ( this assumes that both forward contracts are in USD) The one-year risk free rates are i$ = 4.03%; i = 6.05%; and i = 1%. Detail a strategy using forward contracts that will hedge exchange rate risk. Borrow 970,873.79 today; in one year you owe 1m, which will be financed with the receivable. Convert 970,873.79 to dollars at spot, receive $1,165,048.54. Convert dollars to yen at spot, receive 116,504,854. Sell 1m forward using 16 contracts at the forward rate of $1.20 per 1. Buy 150,000,000 forward using 11.52 contracts, at the forward rate of $1.00 = 120. Sell 1m forward using 16 contracts at the forward rate of $1.25 per 1. Buy 150,000,000 forward using 12 contracts, at the forward rate of $1.00 = 120. None of the above