Assume that you will be making a payment of TZS1,925,110 90 days from now. There is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that you will be making a payment of TZS1,925,110 90 days from now. There is no forward market for Tanzanian Shillings, so you decide to engage in a money market hedge. The 90 day periodic rate for TZS is 2.79%. The current spot rate is TZS2,118/USD. What is the USD amount that you will use for the hedge? Note: Make sure to round your intermediate steps and final answer to four decimal places. Type your answer... Assume that you will be making a payment of TZS1,925,110 90 days from now. There is no forward market for Tanzanian Shillings, so you decide to engage in a money market hedge. The 90 day periodic rate for TZS is 2.79%. The current spot rate is TZS2,118/USD. What is the USD amount that you will use for the hedge? Note: Make sure to round your intermediate steps and final answer to four decimal places. Type your answer...
Expert Answer:
Answer rating: 100% (QA)
To calculate the USD amount for the money market hedge we need to ... View the full answer
Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
Posted Date:
Students also viewed these finance questions
-
Assume that you will be opening a savings account today by depositing $100,000. The savings account pays 5 percent compound annual interest, and this rate is assumed to remain in effect for all...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Your bank is working with an American client who wishes to hedge its long exposure in the Malaysian ringgit. Suppose it is possible to invest in ringgit but not borrow in that currency. However, you...
-
State whether the following statement are True or False: Assets = Owners Equity is also a possible scenario.
-
A charge q sits at the back comer of a cube, as shown in Fig. 2.17. What is the flux of E through the shaded side?
-
Of the 500 inpatient service days in the above example, 386 were Dr. Smith's patients. What percentage of inpatient service days did Dr. Smith have in the neurosurgery unit? Round to one decimal...
-
On January 2, 2010, Bright Lights purchased showroom fixtures for $10,000 cash, expecting the fixtures to remain in service for five years. Bright Lights has depreciated the fixtures on a...
-
Resolve Problem 5-29 with = 0.3. Using MAD, which smoothing constant provides a better forecast?
-
Anita Fields purchased 50 bonds of ABC company at the close. Find the total cost and annual interest. Assume a commission of $6 per bond. Company (Ticker) Coupon Last Last EST $ VOL Company ABC 1.940...
-
Identify the main operator in the following propositions. 1. (A M ) (C E ) 2. (G P) (H W) 3. [P (S K)] 4. (K O) (R B) 5. (M B) [E (C I)] 6. [(P R) (E F)] 7. [(S L) M] (C N)...
-
XYZ industries has a 3-year loan of $10,000. They will pay off the interest due at the end of each year and the final $10,000 at the end of the 3rd year. The interest rate on the loan is a floating...
-
Are there any advantages of holding a conference with the media immediately after a crisis strike before all the facts are known?
-
Why should department responsibilities be assigned on an enterprise-wide basis?
-
What additional information could a comprehensive damage assessment provide that was not available in the preliminary damage assessment?
-
Is there a clear point in time when emergency response ends and business continuity begins?
-
Alerting employees commuting to work about a crisis event at the organization often presents a problem. Identify systems and procedures that can be used to communicate with employees commuting to...
-
Color.java package graph; public enum Color { //for coloring nodes BLACK, WHITE, GREY; } Edge.java package graph; public class Edge { Vertex from, to; int weight; public Edge(Vertex from, Vertex to,...
-
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
-
Speedway Owl Company franchises "Gas and Go" stations in North Carolina and Virginia. All payments by franchisees for gasoline and oil products, which average $420,000 a day, are by check. At...
-
Are refundings by corporations likely to occur steadily over time? If not, when are waves of refundings likely to occur?
-
Under what circumstances is it appropriate to use the weighted average cost of capital as an acceptance criterion?
-
Extracts from the ledgers of Hall Ltd have provided the following information for 2009 and 2010. Sales revenue 2009 Sales revenue 2010 Purchases 2009 Purchases 2010 Expenses 2009 Expenses 2010...
-
(a) Explain why there are always problems at the year-end in the assessment of the costs associated with electricity, gas, and telephone. (b) Using the information below, prepare the appropriate...
-
Arthur Moment set up a table-making business, Forlegco, on 1 July 2010. He had 10,000 available to invest, which is the amount he estimated was required for setting up costs. In the first month of...
Study smarter with the SolutionInn App