What is the value of john forward contract

Assignment Help Finance Basics
Reference no: EM133121750

On June 19, 2016 John entered into a forward contract to buy $100,000 for C$235,000 on June 19, 2017. It's now September 19, 2016, the nine-month forward exchange rate is 2.40 CS/E, and the nine-month interest rates in Canada and the U.K are 4% and 6% respectively, with continuous compounding. What is the value of John's forward contract (in Canadian dollars)?

Reference no: EM133121750

Questions Cloud

Perform on the account : A portfolio has an asset mix of 5% safety, 35% income and 60% growth. When the manager reviews the account prior to the clients annual review, she notices that
What is tom effective annual rate : He sold all stocks today for $126.19. During the year the stock paid dividends of $6.01 per share. What is Tom's effective annual rate?
What is the capm alpha associated with security : You're considering an investment in Gekko & Co, a financial investment corporation that is located in New York City and is currently run by a famed corporate ra
Prepare a monthly schedule of expected cash receipts : Prepare a monthly schedule of expected cash receipts for the first quarter of 2017 and enter the total cash receipts in the month of February
What is the value of john forward contract : On June 19, 2016 John entered into a forward contract to buy $100,000 for C$235,000 on June 19, 2017. It's now September 19, 2016, the nine-month forward exchan
Securities transacted between investors : Secondary markets are where businesses issue new securities and raise capital from investors; while primary markets are where the already issued securities tran
Calculate the amount of fixed overhead volume variance : The firm estimates that it will operate its manufacturing facilities at 670,000 machine hours for the year. Calculate amount of fixed overhead volume variance
How much would it be willing to lend the business owner : A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,500 per month for the next three years and then $500
Destroying acme shareholder wealth : (a) What is the maximum price (in cash) per share that Acme can offer to Value Co's shareholders before destroying Acme's shareholder wealth? Answer based only

Reviews

Write a Review

Finance Basics Questions & Answers

  Expected annual average rate of appreciation

You plan to finance it with a 90 percent loan. The appreciation rate on the property value is expected to be 3 percent annually for the next three years.

  Price movements of currency futures

Assume that on November 1, the spot rate of the British pound was $1.58 and the price on a December futures contract was $1.59.

  Annual revenue was 27000 and the usedequipment was salvaged

over a 5-year period the costs associated with one product lineof aaa company were as follows first cost of 30000 and

  Impact on the quality of documents

Describe the costs which could have an impact on the quality of documents.

  How much recaptured depreciation would result

Since then, it has taken depreciation deductions totaling $124,250. What is the system's current book value? If Largo sold the system for $110,000, how much recaptured depreciation would result?

  How much can the firm spend on new capital? expenditures

If Parker wants to avoid selling any new? stock, how much can the firm spend on new capital? expenditures?

  Determining right amount of short-term liquid investments

Determining the right amount of short-term liquid investments. Owen and Audrey Nelson together earn approximately $82,000 after taxes.

  Explain the range of factors that affect the price

Explain the intrinsic value, minimum and maximum values of calls and puts.

  Preparing the manufacturing processes to meet demand

Processing of Nitinol, the special nickel-titanium alloy used exclusively to fabricate Iron Man's exoskeleton suits, requires highly specialized processing.

  Determining the duration and hedging

A corporation plans to issue $10 million of 10-year bonds in 3 months. At current yields the bonds would have modified duration of 8 years

  What is the standard deviation of these returns

Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.88 percent 3.33 percent 3.97 percent 3.29 ..

  What is her standard deduction

What filing status can Ursula use during 2017 and what is her standard deduction?

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