Question: please answer both this too Question 17 (2.94 points) Saved How many U.S. dollars will UCD end up receiving for its 450,000 euro receivable by

please answer both
please answer both this too Question 17 (2.94 points) Saved How many
U.S. dollars will UCD end up receiving for its 450,000 euro receivable
by using money market hedge? $521,610,2103 $537,352.9412. $507,085.7143. $532,440.00. Question 18 (2.94
this too points) Saved If UCD decides to use options contracts to hedge its

Question 17 (2.94 points) Saved How many U.S. dollars will UCD end up receiving for its 450,000 euro receivable by using money market hedge? $521,610,2103 $537,352.9412. $507,085.7143. $532,440.00. Question 18 (2.94 points) Saved If UCD decides to use options contracts to hedge its receivables, UCD shall Sell one-year put options of 450,000 euros with the exercise price $1.1550 per euro. Buy one-year put options of 450,000 euros with the exercise price $1.1550 per euro. Buy one-year call options of 450,000 euros with the exercise price $1.1550 per euro. Please consider the following information for the next 6 questions. UCD (U.S. based MNC) will receive 450,000 euros in one year. The spot exchange rate today is $1.1600 per euro. It observes that 1. The one-year interest rate for euros is 5%, and the one-year interest rate for U.S. dollars is 2%. 2. In the option market, there is one-year call option or put option available. Both options have the same exercise price of $1.1550 per euro, and a premium of $0.025 per euro. 3. In the forward market, the one-year forward rate exhibits a 4% discount from the current spot exchange rate. Question 19 (2.94 points) What are the expected U.S. dollars UCD ends up receiving for its 450,000 euro receivable based its exchange rate forecasting given below? Scenario Spot Exchange Rate One Year Later Probability 1 $1.1450 55% 2. $1.1600 15% 3 $1.1750 30% $511,537.50. $534,037.50. $531,562.00. $509,062.50

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