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please help me. your help is greatly appreciated. exchange rate and interest rate data are shown in the popup window: the Japanese money rate. Krystafis
please help me. your help is greatly appreciated.
exchange rate and interest rate data are shown in the popup window: the Japanese money rate. Krystafis woighted average cost of capital is 16%, and the company wishes fo pretect the dollar value of thias roceivatie. 3.8\% aremium. a. What are the costs and benefits of alternative hedges? Which would you rocommend, and why? b. What is the break-even reinvestment rate when correaing forward and money market atemabves? Data table ptes. The spot yen from Jap of this receiv pr a put optior (Click on the following icon in order to copy its contents into a spreadsheet.) J.S. dc (Click on the following icon in order to copy its contents into a spreadsheet.) be Y117.724 he nec dolla he ned , dolla he nea 8. dolla the ned to be great do not guarantee the company of settling for the booked amount, but the exchange rase and intecest rate data aro thown in the popop window: the Japanese money tase. Krystafe weighted average cost of captal is 16%, and the comparny wishes to protect the dollar value of this receivablen. 3.5s premium. 2. What are the costs and benefits of alternative hedges? Which would you rocommend, and wiy? b. What is the break-even rninvestment rate when comparing forward and money market alternatives? How much in U.S, dollars will Kryatal receive in 3 months with a forward makket hedge? (Round to the nourest cent.) How much in U.S. dollars wal Krystal recelve in 3 months with a money market hedge? (Round to the nearest cent) How much in U.S. dollars will Krystal receive in 3 months with an option hodge if the expected spot rate in 3 months is assumed to be greater than V117. c0os? (Round to the nearest cont). The do not guarantee the company of Bitsing for the bocked amount, but the yelds the higher certain proceads. (Select from the drop-down monus.) 6. What is the break-even ceinvestment rate when comparing forward and money market allematives? 6 (Round to three decimal places:) Step by Step Solution
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