fbpx

Business & Finance Assignment | Custom Assignment Help

Here is a lot of information but I really needed step by step help on how to solve these questions.

Don't use plagiarized sources. Get Your Assignment on
Business & Finance Assignment | Custom Assignment Help
Just from $13/Page
Order Now

1. Hood College has recently been accepting many foreign students from Saudi Arabia. These students have been coming under a Saudi government program and Hood recently signed a three year agreement with the Saudi government to accept these students. Saudi government is happy to pay these students’ tuition in USD but has indicated that they will be just as happy to pay in JPY. Hood College Admissions office thinks that this may be a good idea because if Hood accepts tuition payments in JPY, Saudi government may send as many as 20 more students per year. Hood College’s CFO thinks this is a bad idea for obvious reasons. But overlunch, he heard you casually mention currency swaps and he is now very much intrigued.

CLICK HERE TO PLACE AN ORDER

  1. Explain how a currency swap would work in this case. What benefit would Hood College gain from entering into a swap? Currently, annual interest payment on Hood’s loan from BB&T is USD 2 million, about the same as the tuition revenues from the Saudi students. CFO would rather this arrangement be a short one, three years or so. Current spot exchange rate is JPY 100/USD and swap rates are given in Table A below. Be as specific as you can.
  2. Even though we all know that governments never lie, CFO would like to be prepared in case the Saudi government changes its mind, either about paying in JPY or sending their students to Hood College. He wants you to carefully explain how a currency swap may be unwound. He wants you to be as specific as you can about what Hood will have to pay to get out of the currency swap you designed in part a after one year into the swap if the JPY and USD interest rates are 0.37 and 5.16, respectively. Assume that the actual spot exchange rate at the time of unwinding is JPY 110/USD.

EC/MG 478 Spring 2019 International Financial Management Sample Final Exam

CLICK HERE TO PLACE AN ORDER

  1. Boise Cascade, a U.S. wood products company, has just signed a 10 year contract to buy unprocessed lumber from a Canadian firm, all payments to be made in CAD. Lumber prices may be reset by the Canadian firm every six months and Boise Cascade has to place their order six months in advance. All orders are payable within 180 days upon receipt of invoice. What kind of foreign exchange exposure does this cause for Boise Cascade? Carefully explain. Carefully describe three different ways Boise Cascade can hedge this exposure, other than entering into a currency swap.
  2. AJ Industries (AJI), a Frederick, MD based firm, has just signed a contract to purchase a piece of very sophisticated chip making equipment from Li Van Weaver, Ltd. (LVW), an Austrian firm based in Salzburg, for €1,250,000. The sale was made in May 2019 with payment due six months later. Because this is a sizable contract for AJI and because the contract is in EUR rather than USD, CFO of AJI is considering several hedging alternatives to reduce the exchange rate risk arising from the purchase and hired you as a consultant. To help the CFO make a hedging decision you have gathered the following information.
  3.  The spot exchange rate is $0.8924/€
  4.  The six month forward rate is $0.8750/€
  5.  AJI’s cost of capital is 10%
  6.  The Euro zone 6-month borrowing rate is 6%
  7.  The Euro zone 6-month lending rate is 4%
  8.  The U.S. 6-month borrowing rate is 3%
  9.  The U.S. 6-month lending rate is 1%
  10.  November 2013 put options for €625,000: strike price $0.9000, premium is 1.5% November 2013 call options for €625,000: strike price $0.9000, premium is 1.0%
  11. What type of exposure is AJI facing? How much?
  12. If AJI carries out a forward hedge, how much dollars will they need to fulfill this contract in November 2016?
  13. Explain how AJI might carry out a money market hedge. (Hint: Just explain each step of the money market hedge – no need to do a calculations.)
  14. What is the dollar value of this contract if AJI chooses a money market hedge?
  15. CFO would like to consider a hedging strategy using F/X options. Evaluate the outcome of an options hedge. Draw the payoff function for this option hedge.
  16. CFO is brash young heir apparent (and a nephew) to the CEO. Since he became the CFO six months earlier, he has been taking on many risky business propositions that has so far paid off. Make a hedging strategy recommendation to the CFO. Always keep in mind that no hedging is a valid strategy. Briefly justify your recommendation.Get business and finance assignment homework help today

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality

Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: support@myhomeworkwriters.com.

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.

Essays

Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.

Admissions

Admission and Business Papers

With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.

Editing

Editing and Proofreading

Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.

Coursework

Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.