Question
Wisera, a Thai Importer bought Macademia from Nguyen Corp. (Vietnam) for 2,400,000 VND, payable in 6 months time. Current Spot Rate THB 0.0014/VND 1 Spot
Wisera, a Thai Importer bought Macademia from Nguyen Corp. (Vietnam) for 2,400,000 VND, payable in 6 months time.
| Current Spot Rate | THB 0.0014/VND 1 |
| Spot Rate in 180 days | THB 0.0015/VND 1 |
| Forward Rate (180-day) | THB 0.0012/VND 1 |
| Borrowing Rate (Thailand, 360-day) | 12.00% |
| Borrowing Rate (Vietnam, 360-day) | 9.00% |
| Investing Rate (Thailand, 360-day) | 11.00% |
| Investing Rate (Vietnam, 360-day) | 7.00% |
| Call Option (180-Day, Strike and Premium) | THB 0.0014/VND 1 and THB 0.0002/VND 1 |
| Put Option (180-Day, Strike and Premium) | THB 0.0012/VND 1 and THB 0.0003/VND 1 |
1. For MMH hedging, in which currency Wisera need to invest?
2. How would Wisera use option contract to hedge against the risk?
3.Which hedging approach should Wisera use to hedge against the risk?
Select one:
Forwards
Options
MMH
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Foundations Of Statistics For Data Scientists With R And Python
Authors: Alan Agresti
1st Edition
0367748452, 978-0367748456
