Sunday
September 21, 2014

Homework Help: International Finance

Posted by Harry on Tuesday, February 7, 2012 at 8:39pm.

Suppose that the current Bid-Offer on the Yen is $0.0089/ and $0.0091/, and the three-month forward is $0.0094/.

1. If you wish to hedge 10,000,000 Yen Obligation due in three months, what position would you take? Explain why.
a. Buy Yen forward at $0.0089/
b. Sell Dollars forward at $0.0091/
c. Sell Yen forward at $0.0094/
d. Buy Dollars forward at $0.0094/
e. Buy Yen forward at $0.0094/

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

International Business - you are assigned the duty of ensuring the availability ...
economics - As such, you are assigned the duty of ensuring the availability of ...
INB 205 - You are assigned the duty of ensuring the availability of 100,000 yen ...
Intl. Business - You are assigned the duty of ensuring the availability of 100,...
International Business - How would I firqure out how much in american dollars =...
inb but math - How many dollars you have to spend to acquire the amount of yen ...
INB - You are assigned the duty of ensuring the availability of 100,000 yen for ...
Finance - 1. (Covered Interest Arbitrage) Harry Norman, a foreign exchange ...
Finance - 1. (Covered Interest Arbitrage) Harry Norman, a foreign exchange ...
Finance - 1. (Covered Interest Arbitrage) Harry Norman, a foreign exchange ...

Search
Members