Spot NOK 8 0000 USD Forward NOK 8 2000 USD 12 month USD Libor 2 00 12 month NOK Libor 8 00 WACC 10 00 Call option strike price USD 0 125 NOK, premium USD 0 0025 NOK Put option strike price USD 0 125 NOK, premium USD 0 0035 NOK You will receive NOK 80M in 1 year What will be your revenue in USD if ...

If you remain unhedged and the spot rate in 1 year is NOK 80000USD your revenue in USD will be USD ...

Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD 12-month USD Libor: +2.00% 12-month NOK Libor: +8.00% WACC: 10.00%...

Fantastic news! We've Found the answer you've been seeking!

Question:

Related Book For answer-question

Market Practice In Financial Modelling

ISBN: 9789814366540

1st Edition

Authors: Tan Chia Chiang

See More Books

Posted Date: Mar 30, 2024 01:42 AM

See More Questions

6. Use the same set of information given in the problem above. (a) Use S&P 500 future prices to calculate the implied dividend yield on S&P 500. For simplicity, assume you can borrow or deposit money...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
You have been hired to generate a list of prime numbers up to some user-specified bound. To do this, we are going to implement of the watershed algorithms of ancient Greek mathematics. This technique...
What is the output produced from the following statements? System.out.println("name\tage\theight"); System.out.println("Archie\t17\t5'9\""); System.out.println("Betty\t17\t5'6\"");...
Convert each equation to the standard form of a conic section. Name the shape described by each equation. a. x2 - y2 + 8x + 10y + 2 = 0 b. 2x2 + y2 - 12x - 16y + 10 = 0 c. 3x2 + 30x + 5y - 4 = 0 d....
FunLand Inc. is a retailer of toys and games. FunLand's beginning inventory is $160,000 and its purchases during the year are $500,000. Its ending inventory is $60,000. Make the closing entries...
Another scientist examines how the presence of a nonnative bird species, the starling, affects other species of birds. Is this a population-level study, a community-level study, or an ecosystem-level...
1. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing. 2. Identify two strategies that might be used to support...
How often should a key and lock custodian audit keys?
Implement this as a whole Java class that includes the following: a) instance variables "name" and "id" using appropriate data types, b) a parameterised constructor that initialised the instance...
What is wrong with the following statement? Markets are always the best way to organize economic activity. Any policies that interfere with markets reduce societys welfare.
Consider a datapath similar to the one in Figure 4.11, but for a processor that only has one type of instruction: unconditional PC-relative branch. What would the cycle time be for this datapath?...
Suppose that in the market for used textbooks the equilibrium price is $30, but it is mistakenly announced that the equilibrium price is $300. How does this affect the efficiency of the market? Be...
In some states that are rich in natural resources, such as oil, the law separates the right to above-ground use of the land from the right to drill below ground (called mineral rights). Someone who...
You ascertain that inventories and (to a lesser extent) trade receivables have risen significantly when you consider that sales have increased by only 5%. Discuss the questions that you ask and the...
Assess a significant benefit that a company can gain by preparing consolidated financial statements for ownership interest in another company that is not a legal entity. Provide support for your...
A circular concrete shaft liner with Youngs modulus of 3.4 million psi, Poissons ratio of 0.25, unconfined compressive strength 3,500 psi and tensile strength 350 psi is loaded to the verge of...
Cite at least two possible choices of system in each of the following situations. For each choice, make a sketch showing the system boundary and state which objects (excluding air) are inside the...
Compare the magnitude of the momenta of a $0.010 \mathrm{~kg}$ bullet fired from a rifle at $1300 \mathrm{~m} / \mathrm{s}$ and a $6.5-\mathrm{kg}$ bowling ball lumbering across the floor at...
(a) A red cart with an initial speed of $0.35 \mathrm{~m} / \mathrm{s}$ collides with a stationary standard cart $\left(m_{\mathrm{s}}=1.0 \mathrm{~kg} ight)$. After the collision, the standard...

Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD 12-month USD Libor: +2.00% 12-month NOK Libor: +8.00% WACC: 10.00%...

Question:

Expert Answer:

If you remain unhedged and the spot rate in 1 year is NOK 80000USD your revenue in USD will be USD ... View the full answer

Market Practice In Financial Modelling

Students also viewed these finance questions