Value against an appreciation of the us exporter currency

Assignment Help Financial Management
Reference no: EM13828922

Value of import USD 10,000,000, Current Spot rate GHS 5.88/USD, One year forward GHS 6.60/USD

Delivery to be done a year from today, Option premium 0.325%,Size per contract USD 500,000,Strike prices GHS 6.00, Interest Rate in Ghana is 31.20% per annum, Interest rate in UK is 6.20% per annum.

Explain how Ghanaian importer can protect its value against an appreciation of the US exporter currency. Show calculations to support your explanation

Reference no: EM13828922

Questions Cloud

Study on new drug for decreasing insulin level in patients : Study on New Drug for Decreasing Insulin Level in Patients
Importance of human resources management in organization : Write a report based on research about the importance of Human Resources Management in an organization.
Study on new drug which increases white blood cell : Study on New Drug Which Increases White Blood Cell
Recruitment for vacant nurse posts : Scenario Analysis: Recruitment for vacant nurse posts at St. Vincent Hospital.
Value against an appreciation of the us exporter currency : Explain how Ghanaian importer can protect its value against an appreciation of the US exporter currency. Show calculations to support your explanation
About functional group decision-making theory : This week’s forum requires you to serve as a facilitator about Functional Group Decision-Making Theory and in your own words – using your own examples, etc.  What this theory is all about and how we can apply it in our every day lives (professionally..
The tax-equivalent yield of a double tax-free : What is the tax-equivalent yield of a double tax-free 5% municipal bond if the investor is in the 28% federal and 7% state tax brackets? A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The change in the level of t..
What changes in the business environment have contributed : What changes in the business environment have contributed to the evolution of performance management
Importance of teamwork in an organization : In a team, everyone involved faces challenges at one point or another. New Strategies for Developing Successful Collaboration outlines five challenges people are likely to face at various levels of an organization. As a team member or the team lea..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the amount of the firms gross profit

Evening Story Corporation has sales of $4,732,270; income tax of $558,166; the selling, general and administrative expenses of $264,444; depreciation of $328,532; cost of goods sold of $2,840,400; and interest expense of $153,129. Calculate the amoun..

  One mutual fund that reflects your investment style

You will be developing a simple portfolio that will be used for analysis over the following five weeks. This will also be used in your in-depth analysis of the entire portfolio for the Week Six Final Paper. You are given $10,000 to allocate to a port..

  What is the amount of bid using borrowing and lending

What is the amount of bid using Options contract and how much of the revenue is exposed and what is the amount of bid using Borrowing and Lending

  Cost of equity-calculate historical growth rate in earnings

Radon Homes's current EPS is $6.16. It was $3.73 5 years ago. The company pays out 55% of its earnings as dividends, and the stock sells for $36. Calculate the historical growth rate in earnings.

  Share in free cash flows to equity

A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow at 6% per year. If the investor’s required return is 14%, what is the anticipated value of the firm at the end of 3 years?

  The market requires an interest rate

Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 8.2% on these bonds. What is the bond's price?

  What is the base-case NPV

Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 15 units per year at $305,000 net cash flow per unit for the next five years.

  What is cost of capital to firm for this project-hurdle rate

The risk free rate is 2.75%, measured by a long-term U.S. government bond. The total market return is expected to be between 12% over the foreseeable future. A biotech firm without production experience is considering making a drug in-house and profi..

  Which of the following is a reason why an expertise in

1 which of the following is a reason why an expertise in international finance is important?a because the process of

  Value of put option at expiration as function of stock price

Consider a European call option that enables you to buy a share of stock at $K at time T, a European put option on the same stock with the same strike and expiration, a zero coupon bond which pays $K at time T. Graph the value of the put option at ex..

  Conducting scenario analysis helps managers

Conducting scenario analysis helps managers see the:

  Chemical processes-revenues from infiltrator division

Flowton Products enjoys a steady demand for stainless steel infiltrators used in a number of chemical processes. Revenues from infiltrator division are $50 million a year and production costs are $47.5 million. However, the 10 high-precision Munster ..

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