Find expected percentage change of the euro

Assignment Help Finance Basics
Reference no: EM132654807

Haines Co. expects to receive 5 million euros tomorrow as a result of selling goods to Belgium. Haines estimates the standard deviation of daily percentage changes of the euro to be 1 percent over the last 100 days. Assume that these percentage changes are normally distributed. Using the value-at-risk (VaR) method based on a 95% confidence level, what is the maximum one-day loss (in dollars) if the expected percentage change of the euro tomorrow is 0.5%?

Reference no: EM132654807

Questions Cloud

Terrorism and antiterrorism- terrorism in northern ireland : A Catholic civil rights movement had engulfed Northern Ireland when Catholics demanded the same rights as Protestants.
Approximate three-year forecast of the krone : What is the approximate three-year forecast of the krone's spot rate if the three-year forward rate is used as a forecast?
Do you think george has of finding a job environment : What chance do you think George has of finding a job environment that would make him completely happy - What points would you attempt to cover and WHY
What the value of novak corp inventory at may is : What the value of Novak Corp inventory at May 31, 2022 is? At May 1,2022, Novak Corp. had beginning inventory consisting of 370 units
Find expected percentage change of the euro : What is the maximum one-day loss (in dollars) if the expected percentage change of the euro tomorrow is 0.5%?
How will each institution balance sheet be affected : Look in a business periodical for news about a recent financial transaction involving two financial institutions. How each institution balance sheet be affected
Explain differences between obscenity and pornography : Explain the differences between obscenity and pornography. Considering child and adult pornography, state the cases both for and against the belief that.
Identify health care facility in richmond : Identify a health care facility in Richmond, Virginia. What type of disaster plan should this organization have in place?
Explain the type of merger-acquisition activity : Use the statement given below to complete the requirements of this assessment.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing what is the company wacc

The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%.

  Formula for calculating the interest rate

What is the formula for calculating the interest rate, present value, and the number of periods?

  Revoke one-fourth of the trust

On January 15th, Linus transfers property to a trust over which he retains a right to revoke one-fourth of the trust.

  Economic interpretation of sing

What is the economic interpretation of this sing? Find Determine its sing. What is the economic interpretation of this sing?

  What is the present value of winnings

Jennifer had won $100,000,000 in the New York lottery, so the state will pay her 20 annual payments of $5,000,000 each beginning immediately.

  How the structure of an organisation customer service

Explain how the structure of an organisation's customer service department relates to customer satisfaction on products and services.

  Capital gains yield will bondholders

Eight years ago, Over-the-Top Trampolines issued a 15-year bond with a $1,000 par value and a 6 percent coupon rate (interest paid annually).

  Compute the present value of liabilities

Compute the present value of your liabilities. Do you have enough assets to cover those liabilities?

  How these factors may and can impact capital budgeting

Capital budgeting can be affected by exchange rate risk, political risk, transfer pricing, and strategic risk. Explain how these factors may and can impact capital budgeting.

  What are the payment plans for a company

Companies frequently borrow money under different payment plans: 1. Pay interest each period, but make no principal payment until the end of the loan period 2.

  What is the minimum acceptable lease payment

If taxes are paid without delay and the rate of interest is 10%, what is the minimum acceptable lease payment for a lessor who pays tax at 21%?

  How much do you need to save at the end of each year

Same situation as #2. But now you are age 40 and you are starting with 0$. How much do you need to save at the end of each year to have $500,000 by age 60?

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