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please solve 1,2,3,4 perfectly 1. If an importer expects to pay $3.5 million dollar in 3 months and is worried about the exchange rate and
please solve 1,2,3,4 perfectly
1. If an importer expects to pay $3.5 million dollar in 3 months and is worried about the exchange rate and decided to hedge his position by paying premium of 1.28 taka/USD with the exercise price of 86.50 taka then what is his ceiling price. If the exchange rate after 3 months is 87 taka how much is his profit or loss? Show by drawing a diagram. 2. What is a mutual fund? What is the NAV of a mutual fund? Why do you think most of the Mutual Funds traded at DSE are underpriced? 3. If an insurance company wants to sell insurance to travelers and finds out that 20 million passengers will buy their travel insurance and there is a 0.0088% chance of death and 0.025% on injury and decides to pay 0.8 million for the cause of death and 0.15 million for injury. If the premium could earn 8% for a year and the company will pay 10 million as underwriting costs and wants to be breakeven in the first year. How much premium should it charge? 4. A) If a car costs $16500 in the USA then how much will it costs in EU countries if 1 Euro = $1.14? B) $0.0116/BDT and 4.21 SAR/USD then how much BDT 1 Saudi Arabian Rival could buy? 1. Write the salient features of leasing. If you can buy a car for 3.5 million taka financing at 15% interest for 5 years and then sell it for 1 million taka whereas you can lease it for 39999 taka per month for the next five years. Should you buy or leaseStep by Step Solution
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