FINS3616 International Business Finance Term 3, 2022
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FINS3616 International Business Finance
Term 3, 2022
Money Market Hedges of Receivables and Payables
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 1
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
Question 2
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by the AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 3
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
Question 4
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 5
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
Question 6
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 7
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
Question 8
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 9
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
Question 10
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 11
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
Question 12
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 13
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
Question 14
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 15
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
Question 16
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 17
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
Question 18
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
The following information is used for the next TWO questions.
You are the financial manager for K-Roo Ltd. and have received the below spot and interest rates quotes from AusBank:
Question 19
Suppose that K-Roo Ltd. has a receivable in AUD in one year’s time and wishes to lock in an amount of USD that it can be converted into. Rather than tap the forward markets directly by using AusBank’s forward bid rate, K- Roo instead wishes to create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward bid price that K-Roo Ltd. is able to achieve for selling their AUD receivable to get USD?
Question 20
Assume that K-Roo Ltd. has a payable in AUD in one year and wishes to lock in an amount of USD that it will cost to cover this obligation. Rather than use AusBank’s forward ask rate, K-Roo instead wishes to again create a portfolio using the using the spot and money market rates provided by AusBank to achieve the same thing.
According to CIRP, what is the effective one year forward ask price that K- Roo Ltd. is able to achieve to purchase the AUD needed to cover their obligation (by spending USD)?
2023-07-25
Money Market Hedges of Receivables and Payables