Determine outcome from hedge if it was closed on august 16

Assignment Help Financial Management

Reference no: EM131323570

On June 17 of a particular year, an American watch dealer decided to import 100,000 Swiss watches. Each watch costs SF225. The dealer would like to hedge against a change in the dollar/Swiss franc exchange rate. The forward rate was $0.3881.

Determine the outcome from the hedge if it was closed on August 16, when the spot rate was $0.4434.

Reference no: EM131323570

Questions Cloud

What is their purpose in behavioral research : What are informed consent and debriefing, and what is their purpose in behavioral research? Is it ever ethical to conduct research that does not use informed consent? Is it ever ethical to conduct behavioral research that does not use debriefing?

Determine whether a long or short hedge is appropriate : Determine whether a long or short hedge is appropriate.- A firm anticipates issuing stock in three months.- An investor plans to buy a bond in 30 days.

Explain the benefit and disadvantages of business analytics : Describe the benefits and disadvantages of business analytics, as well as how the organization can be proactive in addressing any disadvantages. Include at least 3 benefits and disadvantages.

Why are theories so important in behavioral research : What is a research hypothesis? Why are research hypotheses, rather than theories or laws, tested in behavioral research?

Determine outcome from hedge if it was closed on august 16 : On June 17 of a particular year, an American watch dealer decided to import 100,000 Swiss watches.- Determine the outcome from the hedge if it was closed on August 16, when the spot rate was $0.4434.

How do scientists get ideas for research : What guidelines do scientists use to conduct an effective literature search? What specific literature databases are most useful to behavioral scientists?

What is the net ionic equation : What is the net ionic equation for the following reaction? AgNO3 (aq) + NaCl (aq) AgCl (s) + NaNO3 (aq)

What is the initial-state matrix : What is the initial-state matrix - Find and for this system and How many DVD's will be at Walgreens after 3 days - Using excel, construct the transition matrix T for this system. Make sure to label the states.

What is the weight of the sample : A 12.0 mL sample of a compound has a density of 1.44 g/mL. What is the weight of the sample in g?

User Account

All Pages