risk‚ what is Intel’s expected dollar revenue? Answer: If Intel chooses not to hedge‚ the expected dollar revenue is the expected dollar value of the ¥100‚000‚000. The expected spot rate incorporates a 1% weakening of the dollar. This means that the expected yen price of the dollar is 1% less than the current spot rate of ¥103/$ or Et[S(t+90‚¥/$)] = 0.99 [pic]¥103/$ = ¥101.97/$ Hence‚ Intel expects to receive ¥100‚000‚000 / ¥101.97/$ = $980‚681 c. If Intel does not hedge‚ what is the
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disorder from occurring in these areas. One of the tactics being used is offender-focused hot spot policing. This type of tactic focuses on small places or groups of people in small places‚ and tailor specific solutions to problems using careful analysis of local conditions. This tactic has been used as an effective way to reduce violent crimes (cite). This paper will describe the goals of offender focused hot spots policing and provide evidence that this form of policing is effective. With every policing
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on receiving GBP1.0575 million on April 14‚ 1986. On January 13‚ the day the bid was accepted‚ the value of the pound was (U.S. dollars) USD1.4480. Hedge strategy: The spot hedge worked similarly in that it also created a pound obligation 90 days hence. Dozier would borrow pounds and exchange the proceeds into dollars at the spot rate. On April 13‚ Dozier would use its pound receipts to repay the loan. Any gains or losses on the receivable due to a change in the value of the pound would be offset
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Blind Obedience While sitting in church on Sunday going through the same motions of every Sunday‚ my son leans over to ask‚ "Why do we have to stand up for this prayer?" My response "because we are supposed to". Reading "The Children ’s Story" by James Clavell‚ made me think a little more about this question that I had no answer for. A person needs to be able to explain why he does what he does. Children are innocent and unknowing; they are like a blank piece of paper waiting to be filled
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forecasted inflation rates for China and Australia are 3% and 5% respectively. The nominal interest rate or yield in the Australian Dollar market (one year sovereign debt) is 9% while the equivalent rate in China is 6%. The spot exchange rate is CNY 6.6807/Australia$. What is the spot exchange rate one year from now? A. CNY 6.5534/Australia$ B. CNY 6.3256/Australia$ C. CNY 5.9868/Australia$ D. CNY 7.1354/Australia$ You are the CFO of South Side Ventures‚ An Australian domiciled firm‚ that has debt
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the green beans purchase‚ production schedule‚ production mix‚ or the costs of their inputs‚ as the purchasing departing assigns the costs based on specific contract for that shipment. If the inputs exceeded plant’s requirements‚ they are sold at the spot rate in the market‚ and could very well result in a loss. Evaluation of purchasing departments: The purchasing department is responsible for obtaining the required
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New York Institute of Technology Blinds To Go Sheri Pompey Staffing and selection Professor Mohammad Ali‚ PHD July 19‚ 2012 1. Summarize the key strengths and weaknesses of BTG’s staffing system‚ and explain why the factors you identify are strengths or weaknesses. 2. How can BTG improve on the weaknesses you identified in question 1‚ and what can it do to maintain the strengths? In which ways is BTG not prepared to
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Dozier Hedging Alternatives Forward Market Hedge: Dozier would purchase U.S. dollars under a forward contract. The contract would obligate Dozier to pay £1‚057‚500 in exchange for £1‚057‚500 x 1.4198 $/£ = $1‚501‚438.50 assuming the transaction was at the quoted 3-month forward rate in Exhibit 4. Relative to the value of the contract at the current exchange rate‚ £1‚057‚500 x 1.4370 $/£ = $1‚519‚627.50 Dozier would accepting a reduction in the revenue from the contract of $1‚519
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MGRM committed to sell forward the equivalent of over 150 million barrels of oil for delivery at fixed prices with most of the contracts for terms of 10 years. Contracted delivery prices reflected a premium of $3 to $5 per barrel over the prevailing spot price of oil. Energy prices were relatively low by historical standards during this period and were continuing to fall. With this trend‚ MGRM stood to make a handsome profit from this marketing program. Nevertheless‚ a significant increase in prices
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Dozier would choose to remain unhedged‚ and expose itself to currency risk. We assume the company will exchange the 10% deposit into dollars and deposit into the U.S. banks directly. The company can obtain interest revenue from this part of deposit. The spot pound rate in U.S. dollars on January 14 is 1.437. The company can get £117‚500 ×1.437 = $168847.5 when they exchange the deposit. Three-month deposits interest rate in the U.S. is 8% annually. Therefore‚ the interest rate would be 0.08/4=2%. The company
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