Question: 1718 I need 200% perfect answer of both parts. Please please give answer in less than 30 minutes. Just give perfect answer. No explanation needed.


1718 I need 200% perfect answer of both parts. Please please give answer in less than 30 minutes. Just give perfect answer. No explanation needed. I will give positive rating.
Your American global firm has a factory in Brazil. You will need to purchase an intermediate part on June 1st in Brazil, at a cost of 1 million Brazilian Real. The exchange rate in the spot market is $1 to 4.8 Real. The exchange rate in the futures market is currently 1 Real to $0.19 for December delivery, and the exchange rate in December turns out to be 1 Real to $0.175. If you hedge the full 1 million Real in the currency futures market, how much is your gain or loss in December (you will convert your Real back to dollars then)? Gain of $19.333 O Loss of $33,333 O Loss of $19.333 O Loss of $18,333 Rizzo, Inc. has no in-house IT experts. Due to cyber-security risks, Rizzo badly needs to replace its main data servers. Rizzo's ideal way to finance the new servers is: O Going public to raise equity capital O Finance lease 0 Operating lease borrow-purchase
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