Hedge the foreign exchange risk

Assignment Help Financial Management
Reference no: EM131188458

Suppose that your company will be receiving 30 million Euros six months from now and the euro is currently selling for l euro per dollar. if you want to hedge the foreign exchange risk in this payment ,what kind of forward contract would you want to enter into, and how much you want to enter into

Reference no: EM131188458

Questions Cloud

How many alternative methods of overhead absorption : How many alternative methods of overhead absorption rr. ght be used in this situation? What are the benefiti and limitations with regard to Using rr:ese rates at the company?
Goals and objectives at nucor : Review the Nucor case, within the Chapter 6 Reading Assignment. Then, answer the following question: How do goals and objectives at NUCOR relate to the planning facet of the P-O-L-C framework?
Maintain a constant growth rate in its dividends : Suppose you know a company's stock currently sells for $85 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. What is th..
Develop into high-performing teams : Discuss how leaders can help their work groups develop into high-performing teams. Also how can leaders effectively evaluate group performance?
Hedge the foreign exchange risk : Suppose that your company will be receiving 30 million Euros six months from now and the euro is currently selling for l euro per dollar. if you want to hedge the foreign exchange risk in this payment, what kind of forward contract would you want to ..
Write two internship report : Write two internship report.- First Internship Type is: farm relation manager- WR, Second Internship Type is: Safety department - Fireman.
Big five personality assessment : Each team member will complete the Big Five Personality Assessment at the end of Ch. 5 of Organizational Behavior (4th ed.).
Evaluate the scope of the project given the current website : Evaluate the scope of the project given the current website capabilities or the lack of a website. Evaluate the requirements needed to complete the project.
Find the densities of the following substances : find the densities of the following substances: carbon tetrachloride, hexane, benzene, and diiodomethane. Which of these liquids will serve your purpose, assuming no chemical interaction between the liquid and the solids?

Reviews

Write a Review

Financial Management Questions & Answers

  After debating how much you should pay for this house

You hate paying interest, but someday you want to buy a home. Easy - pay cash! After debating how much you should pay for this house, you decide a quarter of a million dollars has a nice ring to it. Assuming your fund will pay 8% and you have 12 year..

  Calculate the stocks expected return

Calculate the stock’s expected return for A stock’s return withs the following distribution: Demand for the Probability of This Rate of Return If This Company’s Products Demand Occurring Demand Occurs (%) Weak 0.2 -30% Below average 0.2 -10% Average ..

  Average amount of debt for industry at cost of debt

Suppose the Washington Post Company WPO has no debt and any equity cost of capital of 9.2%. The average debt-to-value ratio for the publishing industry is 13%. What would it cost of equity be if it took on the average amount of debt for its industry ..

  Take care of the maintenance of the equipment

A contractor estimates that maintenance on a new piece of equipment will be $275 for the first month and it will increase by 0.5% each month afterwards. However, the contractor is offered a service contract that would maintain the equipment for a tot..

  Risk associated with each security independently

The management of Pitsos Ltd is considering the following two investments. The returns of these new projects depend on the state of the economy and they are shown below.

  Intensive care urology practice not-for-profit business

Intensive Care Urology Practice (ICUP), a not-for-profit business, had revenues in 2015 of $144,000. Expenses other than depreciation were 75% of revenues and Depreciation was $15,000. Construct ICUP’s Income Statement. What was ICUP’s Cash Flow for ..

  Calculating earnings per share-price and earnings ratio

Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax e..

  The estimated cost of common equity to the firm

The common stock for the hetterbrand corporation sells for $60.33 and the last dividend paid was $2.18.Five years ago the firm paid $1.89 per share and dividends are expected to grow at the same annual rate in future as they did over the past five ye..

  Advantages of the corporate form of organization

Which of the following are advantages of the corporate form of organization?

  The law firms weighted average cost of capital

The law firm of Bushmaster, Cobra and Asp is considering investing in a complete small business computer system. The initial investment will be $50,000. The computer is in the 5-year MACRS category, and the firm's tax rate is 34%. Calculate the net p..

  Does the sample information support the epas claim

For which values of the sample proportion would the sample data support the EPA's claim, using a 5% significance level?

  Greatest standard deviation of returns

By the history record for U.S. capital market, ________ had the smallest average annual return, and ________ had the greatest standard deviation (total risk) of returns.

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