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Trecerg Inc. is a new automobile manufacturer that specializes in electric cars for export to Italy, Switzerland, and England. The company anticipates that its sales

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Trecerg Inc. is a new automobile manufacturer that specializes in electric cars for export to Italy, Switzerland, and England. The company anticipates that its sales for the next six months will follow that which is given in the table below: Country Quantity Price Revenue Spot Rate 6 Month Forward Rate 3,920 41,730 163,581,600 $1.2307/16 $1.24R5/16 Switrerland 675 F49,094 F33,138,450 $1.0485/1F $1.0685/1F England 43,132 23,075,620 $1.3840/10 $1.3962/1 Teaser's supply chain is globally based for which its total cost structure is shown by the following table: 535 Country Switzerland China Russia Mexico (5) France Germany Finland Italy F66,151,533 127,645,290 P17,012,486 MP19,139,047 C29,771,851 640,404,655 610,632,804 31 412 Spot Rate $1.0488/17 46.3346/15 P56.6589/15 MP18.5887/15 $1.2307/16 $1.2307/16 $1.2307/16 $12107/16 6-Month Forward Rate $1.0685/16 76.4020/15 P57.7081/15 MP19.1780/16 $1.2485/10 $1.2485/16 $1.2485/16 $124RS/ 1) If the cost of capital is 11.5675%, what is the cost to Traser of the option strategy? Trecerg Inc. is a new automobile manufacturer that specializes in electric cars for export to Italy, Switzerland, and England. The company anticipates that its sales for the next six months will follow that which is given in the table below: Country Quantity Price Revenue Spot Rate 6 Month Forward Rate 3,920 41,730 163,581,600 $1.2307/16 $1.24R5/16 Switrerland 675 F49,094 F33,138,450 $1.0485/1F $1.0685/1F England 43,132 23,075,620 $1.3840/10 $1.3962/1 Teaser's supply chain is globally based for which its total cost structure is shown by the following table: 535 Country Switzerland China Russia Mexico (5) France Germany Finland Italy F66,151,533 127,645,290 P17,012,486 MP19,139,047 C29,771,851 640,404,655 610,632,804 31 412 Spot Rate $1.0488/17 46.3346/15 P56.6589/15 MP18.5887/15 $1.2307/16 $1.2307/16 $1.2307/16 $12107/16 6-Month Forward Rate $1.0685/16 76.4020/15 P57.7081/15 MP19.1780/16 $1.2485/10 $1.2485/16 $1.2485/16 $124RS/ 1) If the cost of capital is 11.5675%, what is the cost to Traser of the option strategy

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