17 Jan

An Australian organization has a ¥35,000,000 account payable in 3 months

by jagguarpaw On: Finance - 0 Comment

Question: An Australian organization has a ¥35,000,000 account…

An Australian organization has a ¥35,000,000 account payable in 3 months. The current Japanese yen (¥)/Australian Dollar (A$) spot exchange rate is ¥87.35/A$. The organization expects the spot rate in 3 months to be ¥80.45/A$. The 3-month forward exchange rate is ¥84.95/A$. The Australian Dollar (A$) 3-month borrowing rate is 4.00% per annum and the Australian Dollar (A$) 3-month investment rate is 6.00% per annum. The Japanese yen (¥) 3-month borrowing rate is 8.00% per annum and the Japanese yen (¥) 3-month investment rate is 4.00% per annum. The organization’s weighted average cost of capital is 9.70% per annum. The organization is considering three hedge positions: remaining unhedged, forward market hedge and money market hedge. Which of these hedge positions should the organization adopt?

Tags: 000, 000 account payable, An Australian, An Australian organization, An Australian organization has, An Australian organization has a ¥35, An Australian organization has a ¥35000000, An Australian organization has a ¥35000000 account, An Australian organization has a ¥35000000 account payable in 3, An Australian organization has a ¥35000000 account payable in 3 months Share

Trackbacks and pingbacks

1. sunucu teknik servis
   ... [Trackback] [...] Read More to that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
2. microsoft exchange online plan 1
   ... [Trackback] [...] Find More on to that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
3. ToRReZ Market Link
   ... [Trackback] [...] Find More Info here on that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
4. sexual ethics and islam pdf
   ... [Trackback] [...] Read More here on that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
5. Beställ OxyNorm i Sverige
   ... [Trackback] [...] Read More to that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
6. Kimber Firearms
   ... [Trackback] [...] Find More to that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
7. rolex sky dweller replica
   ... [Trackback] [...] Find More on on that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]
8. Digital transformation
   ... [Trackback] [...] Read More Info here on that Topic: wiseamerican.us/australian-organization-¥35000000-account-payable-3-months/ [...]