fbpx

3- abc paris bid: you have been asked by abc to help determine a

Don't use plagiarized sources. Get Your Assignment on
3- abc paris bid: you have been asked by abc to help determine a
Just from $13/Page
Order Now

3- ABC Paris Bid:

You have been asked by ABC to help determine a bid for installation of a large Projector production facility in Paris Franc. The bid, which consists of all Costs and Profit had to be specified entirely in term of Euro and is to be submitted on June 20, 2012. The client will announce the awarding decision on July 20 and the Euro payment will be received in 90 days (October 20).

ABC expects the projects to cost $1,000,000 in the U.S., £100,000 British pound for importing material from England and an addition 250,000 Euro in Paris. Actual payments for all costs need only be made on October 20. ABC will charge a 10% Profit Margin Markup on all its costs.

The following information on June 20, 2012 is to be used in answering the following questions.

U.S. 90-120 days borrowing rate = 8%
U.S. 90-120 days deposit rate = 7%
Euro 90-120 days borrowing rate = 6.5%
Euro 90-120 days deposit rate = 5.5%
Pound 90-120 days borrowing rate = 9%
Pound 90-120 days deposit rate = 8.5%
Pound spot quote = £.58/$
Pound 3-4 month Forward quote = $1.50/£
Euro spot quote = €0.82/$
Euro 3-4 month Forward quote = $1.10/€

Options strike price Call Put

3-4 month $1.05/€ $.015/€ $.012/€
3-4 month $1.45/£ $.025/£ $.02/£

Options contracts are over the counter and can be purchase for any size. Assume the transaction costs for options and forward contracts are zero.

Your task is to construct the appropriate hedges and recommend of a Euro amount to place as the bid that would guarantee the required 25% profit margin.

Please answer the following questions:

1. How much of the revenue is exposed?
2. What is the amount of bid using Borrowing and Lending?
3. What is the amount of bid using Forward contract?

For Extra Credit answer the following question:

What is the amount of bid using Options contract?

Present your suggestions clearly and make sure you describe the outcomes under all the contingencies.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Entertainment & Gaming
Good work.
Customer 452441, April 4th, 2022
Quora
The instructions were followed but, there are a few mistakes you should correct
Customer 452441, March 25th, 2022
Medicine
Great job.
Customer 463301, November 14th, 2022
Education
You see, you can write quality papers. Just practice conciseness.
Customer 462495, April 9th, 2022
Military
Good work.
Customer 456821, June 20th, 2022
Public Administration
Be keen on plagiarism.
Customer 462779, March 31st, 2022
Business and administrative studies
Avoid plagiarism.
Customer 459305, March 29th, 2022
Family and consumer science
Great effort.
Customer 462739, April 14th, 2022
Military
Excellent work
Customer 456821, June 22nd, 2022
Military
GOOD WORK.
Customer 456821, June 11th, 2022
Engineering
great work
Customer 454161, May 28th, 2020
Professions and Applied Sciences
GOOD application.
Customer 462457, April 13th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat