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Please solve with steps. 1. Ubiflex Technology Ubiflex Technology expects to receive 25,000,000 Japanese yen 90 days from now. Ubiflex decides to hedge its position

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1. Ubiflex Technology Ubiflex Technology expects to receive 25,000,000 Japanese yen 90 days from now. Ubiflex decides to hedge its position by selling Japanese yen forward. The current spot rate of the yen is S.0079, while the forward rate is S.0085. Ubiflex expects the spot rate in 90 days to be S.0080. How many dollars will Ubiflex receive for the 25,000,000 yen 90 days from now? Show all steps clearly. 2. Suppose that a Richard Mille RM27-03 watch costs 777,000 in Germany and that the current EUR/USD exchange rate is S1.20. One Canadian dollar is worth $0.82 USDs. Calculate the Canadian dollar price of a Richard Mille RM27-03 watch. Show all steps clearly. 3. A U.S. investor buys 500 shares of CEMEX (.MX ) on the Bolsa Mexicana de Valores (Mexican Stock Exchange) for 6.8 MXN per share in 2009. The price of CEMEX increases to 13 MXN per share in 2010 when this U.S. investor sells. The USD was worth 12.05 MXN when the investor bought CEMEX in 2009. The USD appreciated to 13.7 MXN when the investor sold CEMEX in 2010 What is the U.S. dollar return of this investment to the investor? Show all steps clearly. 4. Who is Shinzo Abe? What is the inflation goal of Abenomics? What effect will Abenomics have on the value of the Yen against the USD according to theory? Explain using a dia Compare and contrast the theoretical effects of Abenomics on the value of the Yen with the real-world experience of Abenomics on the value of the Yen against the U.S. dollar after Abe's election in December 2012. 5. Wisconsin Whiskey and Wurst (3W) a. 3W is a Wisconsin firm that recently established a European subsidiary with a major Wurst production facility in Munich. The subsidiary was designed to make the wonderful 3W Wurst in Germany to export to America. 3W will sell this Wurst throughout Wisconsin. The subsidiary pays its local employees in Euros. The subsidiary has all of its expenses denominated in Euros. If the Euro strengthens over the next four years, will the value of3W be favorably affected, unfavorably affect, or not affected? Briefly explain. b. If3W finances its Munich production facility by borrowing in Euros from BNP Bank how will its exchange rate exposure change? Why? 1. Ubiflex Technology Ubiflex Technology expects to receive 25,000,000 Japanese yen 90 days from now. Ubiflex decides to hedge its position by selling Japanese yen forward. The current spot rate of the yen is S.0079, while the forward rate is S.0085. Ubiflex expects the spot rate in 90 days to be S.0080. How many dollars will Ubiflex receive for the 25,000,000 yen 90 days from now? Show all steps clearly. 2. Suppose that a Richard Mille RM27-03 watch costs 777,000 in Germany and that the current EUR/USD exchange rate is S1.20. One Canadian dollar is worth $0.82 USDs. Calculate the Canadian dollar price of a Richard Mille RM27-03 watch. Show all steps clearly. 3. A U.S. investor buys 500 shares of CEMEX (.MX ) on the Bolsa Mexicana de Valores (Mexican Stock Exchange) for 6.8 MXN per share in 2009. The price of CEMEX increases to 13 MXN per share in 2010 when this U.S. investor sells. The USD was worth 12.05 MXN when the investor bought CEMEX in 2009. The USD appreciated to 13.7 MXN when the investor sold CEMEX in 2010 What is the U.S. dollar return of this investment to the investor? Show all steps clearly. 4. Who is Shinzo Abe? What is the inflation goal of Abenomics? What effect will Abenomics have on the value of the Yen against the USD according to theory? Explain using a dia Compare and contrast the theoretical effects of Abenomics on the value of the Yen with the real-world experience of Abenomics on the value of the Yen against the U.S. dollar after Abe's election in December 2012. 5. Wisconsin Whiskey and Wurst (3W) a. 3W is a Wisconsin firm that recently established a European subsidiary with a major Wurst production facility in Munich. The subsidiary was designed to make the wonderful 3W Wurst in Germany to export to America. 3W will sell this Wurst throughout Wisconsin. The subsidiary pays its local employees in Euros. The subsidiary has all of its expenses denominated in Euros. If the Euro strengthens over the next four years, will the value of3W be favorably affected, unfavorably affect, or not affected? Briefly explain. b. If3W finances its Munich production facility by borrowing in Euros from BNP Bank how will its exchange rate exposure change? Why

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