User Account

All Pages

What is the expected value of the cash

Assignment Help Finance Basics
Reference no: EM133003919

Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to buy call options on INR1.77 million with an exercise price of A$0.3040 and a premium of A$0.0345.

  • A$0.2114 [37 per cent probability]
  • A$0.4736 [29 per cent probability]
  • A$0.5631 [(100-37-29) per cent probability]

What is the expected value of the cash to be paid in A$ for the call option hedge? (enter the whole number without sign and symbol)

Reference no: EM133003919

Questions Cloud

Find how many balls will have to be sold next year to earn : If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $199,000, as last year
Evaluating the financial statements of a company : Anyone can calculate financial ratios, the real value added is the interpretation. In a brief paragraph (200 - 300 words) what should a Financial Analyst keep i
Dividend lead to an increase in share price : 1. Your company has decided to distribute all profits in dividends.
What would be the company new cm ratio in balls : It would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls?
What is the expected value of the cash : Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to
What selling price per ball must charge next year : If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
Different approaches to finance health systems : The pooling of funds and the purchasing of services differ significantly from country to country. Different countries have adopted different approaches
What is the earning per share for puma corporation : Puma Corporation has the following information for the year to 30 June 2019 Profit for the year RM3.2 million Ordinary dividend paid RMO.84 million Number of or
How does risk get priced into return on investment : The bank has identified risks that surround their business. When management is trying to grow their share of the market, they must take calculated risks to be t

Reviews

Write a Review

Finance Basics Questions & Answers

  Implications of bittorrent for the music industry

What are the implications of BitTorrent for the music industry? For the motion picture industry?

  Discuss the performance of the stock

Discuss the performance of the stock over the last year and offer your thoughts being specific about why the stock has done well or not.

  Cash from various friends and relatives

Your newborn daughter has received a total of $2,500 in cash from various friends and relatives. If you deposit this money for her in an investment

  What is the best known index of that price weighted variety

What is the Best Known index of that Price Weighted variety? How do you reconcile your different results in PARTS (a) and (c) {HINT:HINT} with the idea of benchmarking? Explain why this may be an issue.

  You are given the following information for calvani pizza

you are given the following information for calvani pizza co. sales 51000 costs 21700 addition to retained earnings

  Conch republic electronics is a mid sized electronics

conch republic electronics is a mid sized electronics manufacturer located in key west florida. the company president

  If you put up 28000 today in exchange for a 825 percent

if you put up 28000 today in exchange for a 8.25 percent 15-year annuity what will the annual cash flow

  Explain what is the reasonable cost of capital for average

Explain What is the reasonable cost of capital for average and high and low risk projects Suppose a firm estimates its WACC to be 10 %.

  Give examples of businesses with negative working capital

Give examples of businesses with negative working capital.

  Computing the constant growth rate in dividends after four

the bravo company just paid an annual dividend of 4.00 per share. due to a need to conserve cash the dividend in one

  What is the present value of investment

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 9.9 percent,

  What would be the expected return for a self-financing

Rank all six firms by their market values. How does this ranking order the cost of capital? What would be the expected return for a self-financing portfolio that went long on the firm with the largest market value and shorted the firm with the lowest..

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