Prepare a proposal to your treasurer

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Reference no: EM131904800

You need help with these assignments. Plagiarism will be checked! I also need an individual that can properly write English so I don't have to go back and make corrections after the work is completed.

Assignment 1 :

There are some risks involved with international transactions due to fluctuations of the foreign currency exchange rates. One way to mitigate those risks is through hedging.

Discuss the hedging options: forward contracts and option contracts. What are the advantages and disadvantages of each alternative? What are the costs of each alternative? When is one alternative preferred over the other alternative?

Assignment 2 :

It is generally not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other.

But in other cases, the elimination of one exposure actually creates the other. Discuss which exposure might be viewed as the most important to manage. What are the advantages and disadvantages of the common methods for controlling translation exposure?

Assignment 3 :

Recommending a short term foreign investment

Suppose the treasurer of your company finds out you are enrolled in BUS450 International Finance. Knowing this, your treasurer seeks your advice.

Your company has extra cash reserves of $100,000,000 and needs to invest it for 6 months. The treasurer has heard that investing in foreign currencies for the short term might have a higher yield when compared to a short term United States investment. Research the following:

The US 6 month interest rate

The 6 month interest rate of a country of your choosing

The spot exchange rate of your selected currency relative to the US Dollar

The six-month forward exchange rate per the US Dollar.

Prepare a proposal to your treasurer that outlines your research and recommendation. Provide calculations where necessary to support your recommendation.

Summarize your findings in a three- to five- page paper, not including title and references pages. Be sure to properly cite your resources using APA style.

Requirements for Assignment :

Must be three to five double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.

Must include a title page with the following:

Title of paper

Student's name

Course name and number

Instructor's name

Date submitted

Must begin with an introductory paragraph that has a succinct thesis statement.

Must address the topic of the paper with critical thought.

Must end with a conclusion that reaffirms your thesis.

Must use at least three scholarly sources.

Must document all sources in APA style, as outlined in the Ashford Writing Center.

Must include a separate references page, formatted according to APA style as outlined in the Ashford Writing Center.

Reference no: EM131904800

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