please I need this done in 30 minutes.

ZUZT-ZZ >> FIN 330-1 (LEC) >> International Finance Qu Fir Out Vodafone LLC (US) and ATAT LLC (US) are two of the biggest communication service providers in the US to offer to profitable position, they have continually been hedging the foreign currency ownings We they manufacture or provide services in Kurobe significant conting from our currency markets. How they hedge after, however, dramatically We Vodafone hedged to protect canins ATT LLC has sometimes generated a significant proportion their earrings from their hedo, As the recent graduate from CUD, the CFO of Vodafone (US) you the important tank of analyzing the different types of raced by the multinational articularly for Europos The following transactions are al particular interest to the finance director The Vodafone Llarent company in the US inventory for 87.600.000 payable in 45 days Current apot rate 30 7025/ 45-day forward tate 50 751 Vodafone LLC's parent cost of capitalis 120% US 45-day borrowing rate is 70% pa US 45-day investing rate is 50 p. Ay 45-day borrowing rate is 180% pa Italy 45-day investing rate is 3.0 As a junior analyst, you forecast the future spot rate in 45 days to be $0.76/. The borrowing rate in tyectromely high conto banks not willing to lend to US based companies a) Explain the concept of hedging as to how it relates to international risk management b) Analyse the afferent types of risk faced by Vodafone based on the transaction above. You can assume the could appreciate or depreciate by 10%, and that you believe the future spot rate to be 50.76/0 in 45 days () If you want to hedge the risk by using a forward hedge, how would you proceed? Show your workings (d) If you want to hedge the risk by using a money market hedge, how would you proceed? Show your workings fo) Estimate the break-even rate which would make both the money hedge and forward hedge equally attractive. Show your working (1) Do you expect borrowing and investing rates to be higher in Canada or Mexico? Explain your answer Paragraph BI EEEEE MOKO % 5 3 A 6 7 8 9 W E R. T Y U o S D F G H J X C V B N M * S ZU21-22 >> FIN 330-T (LEC) >> International Finance . 1 Qui stor Fir TI Answer all parts of the question Question 1: Vodafone LLC (US) and AT&T LLC (US) are two of the biggest telecommunication service providers in the US. On top of their existing profitable positions they have continually been hedging their foreign currency earnings. While they manufacture or provide services in Europe, slanificant sales are coming from non-euro currency markets. How they hedge differ, however, dramatically. While Vodafone hedged to protect earrings, ATST LLC has sometimes generated a significant proportion their earnings from their hedges. As the recent graduate from CUD, the CFO of Vodafone LLC (US) assigns you the important task of analyzing the different types of risk faced by the multinational, particularly, for European deals. The following transactions are of particular interest to the finance director The Vodafone LLC parent company in the has sold inventory in Italy for 87600,000 payable in 45 days. Current spot rate $0.7025/6 45-day forward rate $0.75/ Vodafone LLC's parent cost of capital is 12.0% US 45-day borrowing rate is 7.0% pa US 45-day investing rate is 5.0% p.a. Italy 45-day borrowing rate is 180% pa Italy 45-day investing rate is 3.0% p.a. As a junior analyst, you forecast the futuro spot rate in 45 days to be 076/C. The borrowing rate in Italy is extremely high due to barks not willing to lend to US based companies. a () Explain the concept of hedging as to how it relates to international risk management (b) Analyse the different types of risk faced by Vodafone based on the transaction above. You can assume the could appreciate or depreciate by 10%, and that you believe the future spot rate to be 80.76/6 n 45 days, (c) if you want to hedge the risk by using a forward hedge, how would you proceed? Show your working (d) If you want to hedge the risk by using a money market hedge, how would you proceed? Show your workings (0) Estimate the break-even rate which would make both the money hedge and forward hedge equally attractive Show your workings. Do you expect borrowing and investing rates to be higher in Canada or Mexico? Explain your answer ZUZT-ZZ >> FIN 330-1 (LEC) >> International Finance Qu Fir Out Vodafone LLC (US) and ATAT LLC (US) are two of the biggest communication service providers in the US to offer to profitable position, they have continually been hedging the foreign currency ownings We they manufacture or provide services in Kurobe significant conting from our currency markets. How they hedge after, however, dramatically We Vodafone hedged to protect canins ATT LLC has sometimes generated a significant proportion their earrings from their hedo, As the recent graduate from CUD, the CFO of Vodafone (US) you the important tank of analyzing the different types of raced by the multinational articularly for Europos The following transactions are al particular interest to the finance director The Vodafone Llarent company in the US inventory for 87.600.000 payable in 45 days Current apot rate 30 7025/ 45-day forward tate 50 751 Vodafone LLC's parent cost of capitalis 120% US 45-day borrowing rate is 70% pa US 45-day investing rate is 50 p. Ay 45-day borrowing rate is 180% pa Italy 45-day investing rate is 3.0 As a junior analyst, you forecast the future spot rate in 45 days to be $0.76/. The borrowing rate in tyectromely high conto banks not willing to lend to US based companies a) Explain the concept of hedging as to how it relates to international risk management b) Analyse the afferent types of risk faced by Vodafone based on the transaction above. You can assume the could appreciate or depreciate by 10%, and that you believe the future spot rate to be 50.76/0 in 45 days () If you want to hedge the risk by using a forward hedge, how would you proceed? Show your workings (d) If you want to hedge the risk by using a money market hedge, how would you proceed? Show your workings fo) Estimate the break-even rate which would make both the money hedge and forward hedge equally attractive. Show your working (1) Do you expect borrowing and investing rates to be higher in Canada or Mexico? Explain your answer Paragraph BI EEEEE MOKO % 5 3 A 6 7 8 9 W E R. T Y U o S D F G H J X C V B N M * S ZU21-22 >> FIN 330-T (LEC) >> International Finance . 1 Qui stor Fir TI Answer all parts of the question Question 1: Vodafone LLC (US) and AT&T LLC (US) are two of the biggest telecommunication service providers in the US. On top of their existing profitable positions they have continually been hedging their foreign currency earnings. While they manufacture or provide services in Europe, slanificant sales are coming from non-euro currency markets. How they hedge differ, however, dramatically. While Vodafone hedged to protect earrings, ATST LLC has sometimes generated a significant proportion their earnings from their hedges. As the recent graduate from CUD, the CFO of Vodafone LLC (US) assigns you the important task of analyzing the different types of risk faced by the multinational, particularly, for European deals. The following transactions are of particular interest to the finance director The Vodafone LLC parent company in the has sold inventory in Italy for 87600,000 payable in 45 days. Current spot rate $0.7025/6 45-day forward rate $0.75/ Vodafone LLC's parent cost of capital is 12.0% US 45-day borrowing rate is 7.0% pa US 45-day investing rate is 5.0% p.a. Italy 45-day borrowing rate is 180% pa Italy 45-day investing rate is 3.0% p.a. As a junior analyst, you forecast the futuro spot rate in 45 days to be 076/C. The borrowing rate in Italy is extremely high due to barks not willing to lend to US based companies. a () Explain the concept of hedging as to how it relates to international risk management (b) Analyse the different types of risk faced by Vodafone based on the transaction above. You can assume the could appreciate or depreciate by 10%, and that you believe the future spot rate to be 80.76/6 n 45 days, (c) if you want to hedge the risk by using a forward hedge, how would you proceed? Show your working (d) If you want to hedge the risk by using a money market hedge, how would you proceed? Show your workings (0) Estimate the break-even rate which would make both the money hedge and forward hedge equally attractive Show your workings. Do you expect borrowing and investing rates to be higher in Canada or Mexico? Explain your