What is the total amount paid by the corporation

Assignment Help Finance Basics
Reference no: EM132611712

A UK corporation has purchased currency call options to hedge a 70,000 dollar payable. The premium is £0.015 and the exercise price of the option is £0.54. If the spot rate at the time of maturity is £0.59, what is the total amount paid by the corporation if it acts rationally?

Reference no: EM132611712

Questions Cloud

Construct a personal development plan : Construct a personal development plan - Read through the list several times, choose the five most important values, and list them in order of importance
Every financial services industry has some form of cpd : Every financial services industry has some form of CPD? What is CPD? Give an example of CPD you have undertaken in your answer
How calculate the profit available to common shareholders : Calculate the profit available to common shareholders. Calculate the weighted average number of common shares for the year.
Monetary policy on equity market and money market : What will be impact of State Bank of Pakistan monetary policy on equity Market and Money market?
What is the total amount paid by the corporation : If the spot rate at the time of maturity is £0.59, what is the total amount paid by the corporation if it acts rationally?
Calculate the cost per equivalent unit of direct material : Annapolis uses the weighted-average process costing method. Use this information to calculate the cost per equivalent unit of direct material for month of March
Internship experience successes : Your internship course experience and the learning objectives achieved during the course, review your internship experience successes
What is the value of a right-community hospital corporation : Community Hospital Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue.
How each class of shares will be presented in shareholders : Common shares, Show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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