Halliburton exchanges dollars for yen today

Assignment Help Financial Management

Reference no: EM132039267

Suppose that the U.S. firm Halliburton buys construction equipment from the Japanese firm Komatsu at a price of ¥200 million. The equipment is to be delivered to the United States and paid for in one year. The current exchange rate is ¥97=$1.The current interest rate on one-year U.S. Treasury bills is 8 %, and on one-year Japanese government bonds, the interest rate is 6 %.

a. If Halliburton exchanges dollars for yen today and invests the yen in Japan for one year, it will need______$ to exchange today in order to have ¥200

million in one year. (Round your response to the nearest dollar.)

Reference no: EM132039267

Questions Cloud

What is the present value of annuity : what is the present value of the annuity?

Considering two mutually exclusive investments : A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

Discuss about the professionalism and advocacy plan : Before you began your specialization courses, you set goals for your professional development in Professionalism and Advocacy in the Early Childhood Field.

Find the price of the put option : Find the price of the put option using the simulated stock prices.

Halliburton exchanges dollars for yen today : If Halliburton exchanges dollars for yen today and invests the yen in Japan for one year,

Write a case study that identifies several key human factor : Explain how each human factor in the accident may have contributed to another failure that ultimately created an error chain.

Describe three things that affect the firm capital affect : List and describe three (3) things that affect the firm's capital affect.

What are the causes of the disorder : What are the required tests, exams, etc. used to diagnose the disorder? What are the causes of the disorder: genetics, biology, environment, situational, etc.?

Define the value proposition of our product : You need to define the value proposition of our product and define it in a clear message while proposing solutions for potential challenges

User Account

All Pages