Question
Problem 6: Kim Inc. has an FX pass through policy of 75%. The local sales price of its product is NZD 155.00 per unit. Say
Problem 6: Kim Inc. has an FX pass through policy of 75%. The local sales price of its product is NZD 155.00 per unit. Say the NZD appreciates by 16.22% against the USD. What is the new sales price in NZD after the NZD appreciation? Assume that Kim Inc. is an exporter firm.
Problem 7: GoBlipCrash.com (GBCC) is a Cincinnati based high frequency trading consultant. Currently its market equity is USD 100 million. GBCC also has USD 120 million in USD-denominated debt and USD 20 million in cash and marketable securities. GBCCs FX business exposure is 2.60. What is GBCCs FX equity exposure?
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Financial Management For Technology Start Ups
Authors: Alnoor Bhimani
2nd Edition
1398603082, 978-1398603080
