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.What is the amount of Thai Baht to be paid as a result of the forwards hedging.
2.For MMH hedging, how much does Wisera need to invest?
3.For MMH hedging, how much does Wisera need to borrow?
4.What is the amount of Thai Baht to be paid as a result of the MMH hedging.
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
