User Account

All Pages

What is hedged domestic return

Assignment Help Finance Basics
Reference no: EM133056618

You are an American investor who has found an excellent opportunity to invest in Germany (the German currency is now the Euro). When you made the investment, the Euro/USD exchange rate was $1.18. Your investment did very well and earned 13.29%. You hedged the currency using a futures contract with a strike price of $1.17 Euro/USD. What is your hedged domestic return? State your answer as a percentage with two decimal places and not in decimal form (i.e. 13.21 not .1321).

Reference no: EM133056618

Questions Cloud

Net present value of opportunity for swim locker : Swim Locker Inc. sells swimming apparel and accessories; its WACC is 9.5 percent. Time Machine Inc. sells watches and has a WACC of 12.3 percent.
Compute the? bond yield to maturity : 11?-year,?$1,000par value bonds pay13percent interest annually. The market price of the bonds is?$910 ?Fingen's and the? market's required yield to maturity on
Fnd the no-abritrage price of the put option : A European call option is on sales in the market at a price of $3. The underlying asset is now at $10. The strike price of the call is $12 and the maturity peri
Prepare a complete production report for the department : Lauren, Inc. uses a process costing system. Prepare a complete production report for the department using the weighted-average method
What is hedged domestic return : What is your hedged domestic return? State your answer as a percentage with two decimal places and not in decimal form (i.e. 13.21 not .1321).
Calculate the weighted average cost : Calculate the weighted average cost of capital using book value weights. Calculate the weighted average cost of capital using market value weights.
Prepare the consolidation worksheet adjusting entries : Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2016
Compute the predetermined overhead rate : Krypton Inc. manufactures two products, Vintex and Bromal. The company estimated it would incur $160,690 in manufacturing overhead costs
What are the real costs to a british firm : What are the real costs to a British firm of borrowing euros? Contrast this cost to its real cost of borrowing pounds.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the cost of common equity financing

Last year the Black Water Inc. paid dividends $4.82. Company's dividends are expected to grow at an annual rate of 2% forever.

  What is the price of the stock at the end of year 4

1) What is the price of the stock at the end of year 4. 2) What should be the stock price today

  Impact the development of fine and gross motor skills

In other words, how might differences in the child, the family, the community, the culture, and time, impact the development of fine and gross motor skills?

  Richard ivey school of business-case study

Stuart's Branded Foods is not competitive in the market. Is there a different way that can be used to estimate the cost of services and products to the customers, such that the company can become competitive?

  1you purchase a 20 year bond 1000 par value bond that pays

1.you purchase a 20 year bond 1000 par value bond that pays 8 interest semi-annually that can be called in 10 years at

  What other factors may influence the value of a bond

What other factors may influence the value of a bond?

  Sustainable growth and outside financing

What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year

  Annuity premiums and the investment income

Assume that Jane, now age 41, deposited $12,000 in annuity premiums and the investment income increase the value of her account by $1,000, so its total current value is $13,000. Now assume that she withdraws $4,000 this year. Please explain the ta..

  Challenge for many companies doing business abroad

It is a challenge for many companies doing business abroad. How can companies protect themselves form currency fluctuation? Is there a way?

  Profit or loss on new stock issue

Profit or Loss on New Stock Issue

  What is the percentage change in price of bond a

Both bond A and bond B have 6.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while bond B has 15 years to maturity.

  Multiples method of estimating value

What does the multiples method of estimating value say your firm should offer for PBCB? Explain your answer and show your calculations.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd