Business, 24.04.2020 17:17 catuchaljean1623
Salmon Flavored Gelato Corporation, located in the United States, has a note payable obligation of CDN$10 million payable in one year to a fishing firm in Vancouver, Canada. The current spot rate is CDN$1.25=US$1.00 and the one year forward rate is CDN1.281/$1.00. The annual interest rate is 2.5 percent in Canada and 5 percent in the United States. SFG can also buy a one-year call option on $CDN at the strike price of US$0.80 per CDN$ for a premium of US$0.03 per CDN$. Assume that the forward rate is the best predictor of the future spot rate . What is the maximum dollar cost of meeting this obligation using the option hedge is
Answers: 1
Business, 22.06.2019 18:50
Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?
Answers: 3
Business, 23.06.2019 09:00
It will gain you more knowledge, intensify your soft skills, grow your strong work ethics and grow your network and grow your network. what is it ?
Answers: 3
Business, 23.06.2019 13:10
Barry owns a 50 percent interest in b& b interests, a partnership. his brother, benny, owns a 35 percent interest in that same partnership, and the remaining 15 percent is owned by an unrelated individual. during 2016, barry sells a rental property with a basis of $60,000 to b& b interests for $100,000. the partnership intends to hold the rental as inventory for resale. what is the amount and nature of barry’s gain or loss on this transaction?
Answers: 1
Salmon Flavored Gelato Corporation, located in the United States, has a note payable obligation of C...
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