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Saate Probability Free Dollar Value Scenario I Scenario 2 $2565.00 Furn Valur 1900 2.000 1/3 1/3 $1.35/ $1.50 $3000 Scenario 3 13 2,100 $1.65 $3465
Saate Probability Free Dollar Value Scenario I Scenario 2 $2565.00 Furn Valur 1900 2.000 1/3 1/3 $1.35/ $1.50 $3000 Scenario 3 13 2,100 $1.65 $3465 (b) Please solve for the cconomic exposure of the company's French assets. In other words, how does the change of exchange rate affect the dollar value of the assets. To answer this question, you need to build a model Dollar value of French Assets alpha + beta Exchange Rate And then solve for beta. Hint: use the statistics function of your calculator. Choose linear regression for calculation (c) Implication 1-year forward at $1.50/. For hedging the risk, the company should sell Please calculate: a. $ net cash flow when the French assets is worth 980, if the exchange rate is $1.35/ one year later b. S net cash flow when the French assets is worth 1,000, and the exchange rate is $150 c. S net cash flow when the French assets is worth 1,070, and the exchange rate is $1.65/ Saate Probability Free Dollar Value Scenario I Scenario 2 $2565.00 Furn Valur 1900 2.000 1/3 1/3 $1.35/ $1.50 $3000 Scenario 3 13 2,100 $1.65 $3465 (b) Please solve for the cconomic exposure of the company's French assets. In other words, how does the change of exchange rate affect the dollar value of the assets. To answer this question, you need to build a model Dollar value of French Assets alpha + beta Exchange Rate And then solve for beta. Hint: use the statistics function of your calculator. Choose linear regression for calculation (c) Implication 1-year forward at $1.50/. For hedging the risk, the company should sell Please calculate: a. $ net cash flow when the French assets is worth 980, if the exchange rate is $1.35/ one year later b. S net cash flow when the French assets is worth 1,000, and the exchange rate is $150 c. S net cash flow when the French assets is worth 1,070, and the exchange rate is $1.65/
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