Discount for the usd and aud exchange rate

Assignment Help Financial Management
Reference no: EM132017215

1. If the interest in Australian dollar is 3% and the interest rate in U.S. dollar is 1.5% What will be the one-year forward premium or discount for the $USD/AUD exchange rate?

2. The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward premium is 8 percent. What is the 180 day forward exchange rate?

3. Belinda buys a put option on IBM stock for $3. The exercise price is $105. When the option was purchased, the price of IBM was $100, and at the maturity of the option IBM is worth $115. What is Belinda's profit per share?

Reference no: EM132017215

Questions Cloud

Common stock valuation : Assume a dividend growth rate of 4%, that your required rate of return for the stock is 11% and that the market is at equilibrium.
At what forward rate is this arbitrage eliminated : At what forward rate is this arbitrage eliminated?
What is the bond current market price : Madsen Motors's bonds have 14 years remaining to maturity. What is the bond's current market price?
What would the book value per share : What would the book value per share of Ron's Rodents Co.be if the frm had 50,000 shares of common stock outstanding?
Discount for the usd and aud exchange rate : What will be the one-year forward premium or discount for the $USD/AUD exchange rate?
Indifferent between accepting the project and rejecting it : At what discount rate would you be indifferent between accepting the project and rejecting it?
The average real return on crash-n-burn stock : What was the average real return on Crash-n-Burn’s stock? What was the average nominal risk premium on Crash-n-Burn’s stock?
What is the total market value of common stock : What is the total market value of common stock? What is the cost of equity (common stock)?
What is the required rate of return on ibx stock : Suppose the stock has a beta of 2, the risk free rate is 4% per year, what is the required rate of return on IBX stock?

Reviews

Write a Review

Financial Management Questions & Answers

  Changing synergy gain to sunk cost

architectural firm for a feasibility study of a new football stadium is an example of a synergy gain.", changing "synergy gain" to "sunk cost"

  Cost of exchange settlement reserves to commercial banks

Modern central banks, target the cost of exchange settlement reserves to commercial banks and not the quantity of reserves.

  Just-in-time inventory management systems

Just-in-time Inventory Management systems began to appear in the United States in the Late 1970’s manufacturing space.

  Calculate the corporation total accounting profits

A corporation has $7 million in equity. During 2015, it had $4 million in receipts and $2 million in capital gains from the sale of a subsidiary. It incurred labor costs of $1 million, interest costs of $250,000, material costs of $500,000, and paid ..

  What is cost basis of new asset for depreciation purposes

A new truck was purchased for $160,000 by trading in a similar truck that had a book value of $51,300. Assuming that the trade-in allowance is $45,000, what is the cost basis of the new asset for depreciation purposes?

  Carol offers to sell her personal computer to bob

Carol offers to sell her personal computer to Bob for $200. - Bob says that he will buy the computer for $200 if Carol will include the monitor and keyboard. - Is this valid acceptance?

  Articulate the costs and benefits in actual dollar amounts

What challenges did you face when trying to articulate the costs and benefits in actual dollar amounts? As a nurse leader, what can you do to ensure you are making fiscally responsible decisions?

  Compute tin-macaulay duration

Consider a 15-year mortage with annual installments. The effective annual rate of interest is 6%. Compute tin- Macaulay duration if the mortgage is prepaid immediately after the third regular payment in made.

  What is the future value of your investment in euros

For this and the next 2. Suppose the following facts apply: Spot currency rate ($/ = $1.28); Forward exchange rate for 1 year delivery = $1.25; US 1-year interest rate: rUS = 4%; Euro 1-year interest rate: rE = 7%; Amount to invest = $5,000,000. You ..

  Calculate the current market yield for an outside investor

calculate the current market yield, for an outside investor, for the:

  What is the required amount of each deposit

John Rider wants to accumulate $100,000 to be used for his daughter’s college education. what is the required amount of each deposit?

  What percent would earnings before interest-taxes increase

If sales should increase by 30%, by what percent would earnings before interest and taxes increase? What percent would net income increase?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd