What is the value of the gain or loss

Assignment Help Finance Basics
Reference no: EM133069890

Your London-based firm expects to receive ¥50,754,000 in 6 months from a Japanese corporate customer. To hedge the exchange rate risk, your firm enters into a forward agreement at a forward rate of ¥1.00 = $0.0082. Suppose you calculate the gain or loss realized on the forward given a potential future spot exchange rate ¥1.00 = $0.0076. What is the value of the gain or loss? (READ THE NEXT SENTENCE CAREFULLY!). Please note you need to sign your answer carefully, for example, an answer of -5 (i.e., a negative 5) would mean a $5 loss, and an answer of of 5 (i.e., a positive 5) would mean a $5 gain. Round and express your answer to the nearest whole dollar (i.e., to the nearest ingeter).

Reference no: EM133069890

Questions Cloud

Discussion about the concept of interest : Getting over with the discussion about the concept of interest, and your mother invested ?18 000 in government securities that yield 6% annually for three years
Introduction empirical study for dataset : 1. Download daily data of assigned stock from Jan 01, 2020, to December 31, 2020 from NSE Website.
What is the total payments for merchandise purchases : Additional information is as follows: Deposits in transit P192,330 and Service charges for December 1,000. What is the total payments for merchandise purchases
How much coverage will she receive from cdic : Susanna holds a $100,000 3-year GIC at ABC Bank; a 1-year $100,000 GIC at XYX Bank; and a $50,000 mutual fund portfolio at DEF Bank. How much coverage will she
What is the value of the gain or loss : Your London-based firm expects to receive ¥50,754,000 in 6 months from a Japanese corporate customer. To hedge the exchange rate risk, your firm enters into a f
What is the trader net profit : The option premium is $1.47. At the end of one year, the price of GE stock is $25.46. What is the trader's net profit (gain or loss)
Calculate the eac for the project : Calculate the EAC for the project. (Enter a positive value and round to 2 decimals)
Calculate the initial cash outflow : Calculate the initial cash outflow. (Enter a negative value and Round to 2 decimals)
What is required adjustment to report the correct balance : What is the required adjustment to report the correct balance of loan receivable at year end? Deb's Inc follows ASPE and uses straight line method

Reviews

Write a Review

Finance Basics Questions & Answers

  What amount of the note payable should l include

What amount of the note payable should L include in the current liabilities section of its December 31, 2013, balance sheet?

  Human resources for a pharmaceutical company

Hari works in human resources for a pharmaceutical company. He and his colleagues are giving a presentation on updates to the company

  Control impact the leadership process

How does internal vs external locus of control impact the leadership process?

  Determine the equivalent taxable yield

A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.50 percent yield to maturity and a similar-risk corporate bond.

  Compute the test statistic

Is there evidence that the dual degree students are receiving lower grades than regular management students?

  Summarize the article - factors influencing the stock prices

Summarize the article - Study of Factors Influencing the Stock Prices of Selected IT, Cement and Pharmaceutical Companies in Indian

  How should it change its target for the federal funds rate

Would you recommend borrowing from a bank at an 18 percent annual interest rate to take advantage of the cash discount offer? Explain your answer.

  E-eyes.com has a new issue of preferred stock

Valuing Preferred Stock. E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 8 percent on th..

  The final paper will involve applying the concepts learned

evaluation of corporate performancethe final paper will involve applying the concepts learned in class to an analysis

  Proposed acquisition of a new earth mover

You have been asked by the CEO of the ENI Construction Company to evaluate the proposed acquisition of a new earth mover. The mover"s basic price is $50,000, and it would cost another $10,000 to modify it for special use in the newly awarded contr..

  Foreign travel services has net income of 48400 total

foreign travel services has net income of 48400 total assets of 219000 total equity of 154800 and total sales of

  A nursing home contracts with an hmo

A nursing home contracts with an HMO for skilled nursing care at $2.25 PMPM. If costs are expected to average $125.00 per day

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