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Suppose that he US.fm Maliburton buys construction equipment from the Japanese firm Komatsu ta price of W210 milion. The equipment is to be delivered to

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Suppose that he US.fm Maliburton buys construction equipment from the Japanese firm Komatsu ta price of W210 milion. The equipment is to be delivered to the United States and paid for in one year. The current exchange rate is V102 - $1. The current interest rate on one-year US Treasury bilis 8%, and one year Japanese government bonds the rest rate 6% Halliburton exchanges dollars for yon today and invests the yen in Japan for one you, it will need to exchange today in order to have 1210 million in one year round your response to the normalar) b. If Halliburton enters a forward contract agreeing to buy 1210 million in one year at an exchange rate of 100-31, will need today if c. Halliburton invests today at the U.S. erest rate of Without entering in any lype of contact does them know how many do plans to invest the dollars at the US interest rate of s ound your response to the newest doar reads today tou s equipment contract in one year? O A No, but takes the risk O B. Ne it depends on the exchange rate at the end of the contract OC Yes, I would need 1,044444 OD. Both A and are correct d. Which methods described in (a) through provides a rege against exchange rate Wuch does not OA Aedes provided by a but not and land thus Hamburton only prefers cal OB Hedges are provided by aanduino and Matburton preters because I w as OC Hedges are provided by and but not and burton preters (because cosess OD Hedges are provided by and c) but not and Mabulon profers (c) because costs less e. In order for the re a l and to be event the forward contract exchange rate in has to be perdor Round your response to two decimales

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