Question: PLEASE SOLVE AND SHOW ALL WORK FOR PART D Trident has concluded a sale of telecommunications equipment to Regency (U.K.). Total payment of pound 2,000,000

PLEASE SOLVE AND SHOW ALL WORK FOR PART D

PLEASE SOLVE AND SHOW ALL WORK FOR PART D Trident has concluded

Trident has concluded a sale of telecommunications equipment to Regency (U.K.). Total payment of pound 2,000,000 is due in 90 days. Given the following exchange interest rates, options quotes, answer the questions. a) Calculate net proceeds from forward hedge in 3 months. b) Calculate net proceeds from money market hedge in 3 months assuming WACC for investment. c) What is the breakeven reinvestment rate when comparing forward and money market hedges? d) What is the breakeven spot rate when comparing the put option and forward hedges? Use WACC to carry cost forward

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