Please show work so I know how to calculate!! Uses the tables below to find the missing information to properly calculate each step.

It is Tuesday afternoon, January 08, 2023. You, Assistant Treasurer, are thinking about how to hedge against foreign exchange fluctuations. You have two things to take care of: Dividends & upcoming payments.

Dividend: Dividends are due on August 09, 2023. The dividend is from your subsidiary company in Germany. The amount is 3,000,000, considered as receivables.d

Upcoming payment to your supplier in Japan: The current trend is that Yen per USD is around 131 and decreasing. The price per unit is 8,000. And you agreed to buy 350,000 units. The payment is due on May 04, 2023.

When your company borrows in the EURO currency, it typically borrows at LIBOR + 1%

When your company lends in the EURO currency, it typically lends at LIBID

Use the following tables to assess alternative ways of hedging.

YEN payable in 117 days:Collect information:

How much do you need to pay?

Spot rate & Forward exchange rate

Spot rate?

4-month forward exchange rate?

Interest rate

USD interest rate: BID & ASK?

YEN interest rate: BID & ASK?

Option: Strike & Premium

Which option?

Do you buy or sell option?

Do you buy or sell Yen?

Strike price?

Premium?

Hedging methods

Forward hedge

Step 1:

Step 2:

Money market hedge

Day 1:

Step 1:

Step 2:

Step 3:

Day 214

Step 1:

Step 2:

Option hedge

Total Premium?

Future value of the total premium?

Scenario

If the spot rate on the expiration date is greater than ________.

If the spot rate on the expiration date is less than ________.

Analysis

create a Graph

Which one do you prefer and why?

Table 1: Spot Exchange Rates Table 2: Forward Exchange Rates -4 Month Table 3: Forward Exchange Rates - 7 Month Table 4: Money Market Rates - EURO Table 5: Money Market Rates - YEN Table 6: Money Market Rates - USD Table 8: Currency Options - YEN: The option prices are quoted in U.S.centsper100 ven Table 1: Spot Exchange Rates Table 2: Forward Exchange Rates -4 Month Table 3: Forward Exchange Rates - 7 Month Table 4: Money Market Rates - EURO Table 5: Money Market Rates - YEN Table 6: Money Market Rates - USD Table 8: Currency Options - YEN: The option prices are quoted in U.S.centsper100 ven