A firm has a right to receive 100 ounces of gold in 90 days' time. The...

 

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A firm has a right to receive 100 ounces of gold in 90 days' time. The firm intends to use the money received from this transaction to pay on a repayment of a loan for $AUD 100,000, The current spot rate for gold is $USD 920 an ounce and the current USD/AUD exchange rate is 8oc. current daily volatility of gold is expressed in $AUD terms is $2.25. You wi need to calculate value at risk for this transaction given that managemen. has stated it wants a 1 in 50 risk tolerance, Given the measure of dowIside risk or var and the stated risk tolerance - fill in the sentence below with whether or not the firm can leave its position unhedged. The firm Select v leave its position unhedged. Age A firm has a right to receive 100 ounces of gold in 90 days' time. The firm intends to use the money received from this transaction to pay on a repayment of a loan for $AUD 100,000, The current spot rate for gold is $USD 920 an ounce and the current USD/AUD exchange rate is 8oc. current daily volatility of gold is expressed in $AUD terms is $2.25. You wi need to calculate value at risk for this transaction given that managemen. has stated it wants a 1 in 50 risk tolerance, Given the measure of dowIside risk or var and the stated risk tolerance - fill in the sentence below with whether or not the firm can leave its position unhedged. The firm Select v leave its position unhedged. Age

Answer rating: 100% (QA)

Given 100 aunce Gold recivable in 90 days as curre... View the full answer