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Question: What is the role of finance in protecting against exchange risk?
Q1. What currency risks does Huaneng face? Q2. Do its lenders face any currency risks? Explain.
Sales to Asia, saw their share prices plummet in the wake of the Asian financial crisis. Explain.
Assess the likely impact of the rupiah's depreciation on Bakrie's three different businesses.
What has happened to the real value of the yuan over the past year? Has it gone up or down? A little or a lot?
Aldridge is requesting an expansion of its credit line. What information would you as a banker need before you accede to its request?
What additional information do you need to fully assess the impact of currency changes on Nippon Steel?
How are sales and profits of these products, as well as Monsanto's other chemicals, likely to be affected by changes in the value of the dollar?
Assess Boeing's currency risk. How can it cope with this risk?
In what ways is KAL affected by depreciation of the won against the dollar? How can KAL use the financing to reduce its currency risk?
In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate?
*What mode does 3M use? *What is 3M's balance of the three challenges?
1. What ethical issues do you see in cross border education? How would you change a university to make it more socially responsible?
You buy eight contracts of Euro currency futures (i.e. total of one million Euros) with an initial margin of $2835 per contract.
Comment on the following headline from The New York Times. "Germany Raises Interest Rate, and Value of Dollar Declines" (October 10, 1997).
What were the likely consequences of this capital flight for Argentina's peso money supply? for Argentine peso interest rates? for economic growth?
What is the likely impact of this policy on Asian foreign exchange reserves? On Asian inflation? On Asian export competitiveness?
What is the effective financing rate for a U.S. firm that takes out a one year, uncovered NZ$ loan?
What is the value of a 2-month derivative that will be either 529 (if the stock price is 23) or 729 (if the stock price is 27)? Use no-arbitrage arguments.
Compute the indirect quote for the spot and forward Canadian dollar, yen, and, and Swiss franc contracts.
Under FASB-52, what is the translation amount to be shown on American Golf's equity account for the year if the Franc is the functional currency?
What role does economics play in your personal decisions? What role does economics play in your organizational decisions?
Question: Explain how transactions (both sales and purchases) in a foreign currency are recorded and reported.
Explain how a rise in the euro might affect a French company exporting wine to the U.S.
What is the current account generally composed of? What is the capital account generally composed of?