Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

International finance

17/10/2020 Client: sathvik2009 Deadline: 10 Days

 


BAFI1018


Final Assessment


You work for firm XYZ situated in Australia, and your boss has become concerned about the


current economic environment, especially as it relates to the different types of exposures that


your firm may face in the near future. You are asked to provide a report, which evaluates how


your firm is exposed, and what are possible hedging strategies. You are also to provide a


recommendation for what your firm should do.


Report requirements:


1. Due: 23 October 2020 by 23:59 AEST


2. World limit: 1500 words max (but you should aim 1000 words).


3. All figures/graphs/calculations should be in the appendix


4. All calculations should be labeled. If we do not know what the calculation is for,


we cannot evaluate it.


Below are some details about the financial/economic environment of the firm:


Firm XYZ:


1. Your firm sells goods domestically and abroad.


2. The firm has a payment due in 3 months time worth 400,000 EUR to foreign


supplier.


3. A U.S. importer owes the firm 300,000 USD, due in 4 months.


Economic environment:


1. RBA is considering implementing an expansionary monetary policy by lowering


the cash rate.


2. Economic growth of your foreign markets, where you export your goods, has


declined relative to domestic economic growth.


3. The firm is considering issuing 500,000 USD bonds with a maturity of 1 year.


Your job:


1. Use the information above to consider the types of exposure your firm may face.


2. “S” in the table below means spot rate: search for the current spot rate for the


appropriate currency pair.


3. Propose some hedging strategies, and evaluate the outcomes. Should the firm hedge?


(see detailed marking guidelines below)


4. The table below provides information on the forward rates, exercise rates (based on the


S you find), as well as premiums.


5. Use information on the economic environment to consider how S will be affected, relate


this to how this may impact the firm.


Additional information:


1. Please use the rate information provided in the table. This means you will have


different rates, depending on when you source the information (e.g. exchange


rates change continuously).


2. Look for spot rate forecasts (banks/newspapers offer these) to use for calculating


the profitability of a hedging strategy when you need a future spot rate. State why


you are using this rate (e.g. such and such predict that AUD/USD = X in 3


months, and using this rate...)


Table 1: Relevant information


Currency


pair


Price of


call


Price of


put


Exercise


Put


Exercise


Call


Fwd rate Spot rate interest


S(AUD/EUR) 0.007 0.01 S+0.02 S - 0.15 1.6 see current


available*


see current


available*


S(AUD/USD) 0.006 0.008 S+0.015 S - 0.10 1.35 see current


available*


see current


available*


* see current available = use a reliable source to find the data (e.g. Yahoo Finance)


Notes on the table: To determine the exercise rate of a put, for example for AUD/USD, search


for the current spot rate for the currency pair, and then add 0.02 to the spot.


------------------------------------


Additional notes:


1. Executive summary not required


2. Cover sheet not required


3. Table of contents not required


4. Must provide references


Submission:


1. Online via Canvas


2. Turnitin in required with the report


3. Report should be in Microsoft word or pdf formats only!


Marking guidelines: 40 points of your final grade


1. Exposure: show understanding of different types of exposure, specifically as it


related to the firm (8 points)


2. Hedging strategies: show knowledge of different strategies available in the market ( 5


points)


a. Show calculation of hedge/no hedge decisions under different strategies (15


points)


b. Use currently available information (3 points)


● For example, for interest rates you can find the central bank rate of the


foreign market


c. Show where you source your data from (2 points)


3. Recommendation: which strategy should you use? Why? Use your analysis to


provide the recommendation (5 points)


4. Appendix: exempt from word limit, but should only include figures/data (2 points

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Solution Provider
Top Essay Tutor
Buy Coursework Help
Top Grade Essay
Custom Coursework Service
Quality Homework Helper
Writer Writer Name Offer Chat
Solution Provider

ONLINE

Solution Provider

Hi.I have read your descriptions and i will provide you quality work.I am a Ph.D. writer with 5-6 years of experience. I have worked on several similar projects and can deliver quality works in a tight deadline. I am interested to hear more about the project and about the subject. If you award me the project I would be very glad to discuss this further and get started for you as soon as possible. Thanks You!

$155 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$165 Chat With Writer
Buy Coursework Help

ONLINE

Buy Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$162 Chat With Writer
Top Grade Essay

ONLINE

Top Grade Essay

Working on this platform from a couple of time with exposure of dynamic writing skills gathered with years experience on different other websites.

$162 Chat With Writer
Custom Coursework Service

ONLINE

Custom Coursework Service

Hey, Hope you are doing great :) I have read your project description. I am a high qualified writer. I will surely assist you in writing paper in which i will be explaining and analyzing the formulation and implementation of the strategy of Nestle. I will cover all the points which you have mentioned in your project details. I have a clear idea of what you are looking for. The work will be done according to your expectations. I will provide you Turnitin report as well to check the similarity. I am familiar with APA, MLA, Harvard, Chicago and Turabian referencing styles. I have more than 5 years’ experience in technical and academic writing. Please message me to discuss further details. I will be glad to assist you out.

$155 Chat With Writer
Quality Homework Helper

ONLINE

Quality Homework Helper

Hi dear, I am ready to do your homework in a reasonable price.

$162 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Plots - Nursing - The cocktail party ts eliot sparknotes - Respond post to other classmate only need 2 paragraph - Objets de la classe - Great expectations chapter 56 - Electron dot structure of sf6 - What does curt lemon carry - Managing Health Care - OT- Journal Analysis 3 - Killing us softly 4 citation - Apple's ecosystem - Click and learn csi wildlife - Nvc nonviolent communication pdf - Biodegradable plastic bags business plan - Pride and prejudice analysis pdf - Trek company has the following production - Kelly country v beers summary - The importance of user technology security education within organizations - Glifeeis.grantham.edu - Pqr is what type of polynomial - Point between two charges where electric field is zero - Transas 4000 ecdis user manual - Ultimate slimy lab instructions pdf - Millivolt drop test for busbar - Adobe analytics keyword unavailable - Lección 5 grammar quiz - City two point perspective - Candy thermometer soft ball stage - Sqa higher music concepts - Dj mbenga net worth - John maddocks jazz band - Maslow's theory mcdonalds - Igneous rock song lyrics - Guyuk khan letter to pope - Carl rogers 6 conditions - Case study - Solar energy reaches earth's atmosphere primarily by - Mylabsplus montclair state university - Creative strategy planning and development ppt - Young writers monster poetry - The national center for education statistics monitors many aspects - Spiritual gifts test lifeway - How do nurses cope when values and practice conflict - Great expectations chapter 43 - I had a little turtle his name is tiny tim - Sociology observation assignment - A careless zookeeper named blake answers - Should students use mobile phones - Right total knee replacement icd 10 - How to drape in massage therapy - The synthesizer has virtually no standard repertoire - Dorothy johnson behavioral system model ppt - Discussions and Assignmnt. - Please read question in comment section 500 words. - Ieee two column template - Research Paper: Proposal - Anchors of organizational behavior knowledge - Mcnemar chi square calculator - David yang nkauj hmoob america lyrics - An air conditioning manufacturer produces room air - Fourth generation language definition - Billy collins the revenant concert lighting systems australia pty ltd the law of the few motsenbocker's lift off bunnings - The host canterbury tales - Sample news report script - DB 6 - Discussion Post Juveniles’ Rights to Due Process" - The following engineering stress strain data - Food safety program template class 2 - Omnitel pronto italia case study - Let not to the marriage of true minds - Http www bls gov emp ep_chart_001 htm - Classification of fingerprints henry system - Waitaki district council building consent - Vark analysis paper - How to graph y 1 3x - Brownson evidence based public health - Proscenium arch stage diagram - Complementary and Alternative Health Care - Archetypes - Practical Connection Assignment - Policy & politics in nursing and healthcare 7th ed - Stylistic equivalence in translation - International business mcgraw hill 10th edition - Should we have zoos debate - Delta h of naoh and hcl - What is the mass of mercury in kg - Ucl desktop anywhere login - Cloud programming and software environments ppt - What is the primary purpose of the joint commission - Nutrition Research Paper ***** TOPIC**** Diabetes insipidus and pregnancy - Chemistry article hot and cold packs answers - Individual database design and erd creation - Coca cola company vision and mission statement - Process recording example social work - Week 3 IT impact - Causes of the industrial revolution webquest answer key - Residential valuation report sample - Composite restorations in anterior teeth fundamentals and possibilities - Jack ma characteristics as a leader