What is the real cost of hedging the payable

Assignment Help Financial Management

Reference no: EM131511709

Money Corp. used a forward hedge to hedge its payables of Malaysian ringgit (MYR) 1,500,000. The forward rate was $.23. On the day Money Corp. received the MYR, the spot rate was $0.21/MYR. What is the real cost of hedging the payable?

Reference no: EM131511709

Questions Cloud

What is the implied volatility of the stock : The current risk-free interest rate is 3.00%. What is the implied volatility of the stock?

Determine the amount of dollars it will pay for the payables : Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium.

How much did the euro appreciate or depreciate : How much did the euro appreciate or depreciate? Be sure to indicate whether the euro appreciated or depreciated.

What should be the value of the put : if the effective annual risk-free rate of interest is 6% and there are four months until expiration, what should be the value of the put?

What is the real cost of hedging the payable : On the day Money Corp. received the MYR, the spot rate was $0.21/MYR. What is the real cost of hedging the payable?

What would be third year future value : What would be the third year future value?

What is payback period for the cash flows : What is the payback period for the cash flows?

Call options value using the two-state stock price model : calculate your estimate of the the call option's value using the two-state stock price model.

What will its cost of equity be : What is Malkin’s cost of equity? If the firm converts to 60 percent debt, what will its cost of equity be?

User Account

All Pages