Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Stover Corp., a US based importer, makes a purchase of crystal glassware from a firm in Switzerland for 39,960 swiss francs, or $24,000,k at the spot rate of 1.665 francs per dollar. The terms of the purchase are net 90 days, and the us firm wants to cove this trade payable with a forward market hedge to eliminate its exchange rate risk. Suppose the firm completes a forward hedge at the 90 day forward rate of 1.682 francs. if the spot rate in 90 days is actually 1.638 francs, how much will the us firm have saved or lost in us dollars by hedging its exchange rate exposure?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941968

Have any Question? 


Related Questions in Basic Finance

A company is planning to open 100 new outlets that are

A company is planning to open 100 new outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity. If the company's WACC is 10%, what is the NPV of thi ...

In terms of pumping performance how should engineers

In terms of pumping performance, how should engineers determine the use of radial flow pumps and axial flow pumps?

Assignmentwhen appropriate provide a citation and a copy of

Assignment When appropriate, provide a citation and a copy of your source. 1. a. Describe the basic characteristics of stock insurers. b. Describe the basic features of mutual insurers. c. Identify the major types of mut ...

Bull what are the major provisions of the glbabull what is

• What are the major provisions of the GLBA? • What is an FHC? • How does a bank holding company become an FHC? • What conditions must be met to become an FHC?

Wy are voids filled with lightweight infilling

Why are voids filled with lightweight infilling material in raft foundation of pumping stations?

For a world in which international trade would be based

"For a world in which international trade would be based only on the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zerosum game." Do you agree or disagree? Why?

Budgeting with real optionsa capital investment project

Budgeting with Real Options A capital investment project that generates new opportunities is more valuable than one that doesn't. A flexible project, one that does not commit management to a fixed operating strategy is m ...

What do you think about the following statement i am going

What do you think about the following statement? "I am going to receive $100 two years from now and $200 three years from now, so I am getting a $300 future value." How could the two cash flows be compared or combined?

Choose three of the stocks - two within the same industry

Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch completed in module 03 and then locate interest rates on two other investments that are not ...

Question 1finance has its origins ina economics and

Question 1 Finance has its origins in: a. economics and statistics b. accounting and sociology c. accounting and economics d. psychology and mathematics Question 2 Successful businesses typically progress through a serie ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate