homework 2023 Business Finance
2023 Problem 5 5 Vancouver Exports A Canadian exporter Canuck Exports
Problem 5.5 Vancouver Exports A Canadian exporter, Canuck Exports, will be receiving six payments of â¬12,000, ranging from now to 12…
| Problem 5.5 Vancouver Exports | ||||||||||
|
A Canadian exporter, Canuck Exports, will be receiving six payments of €12,000, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to change the euros to at the end of the various periods. Which currency appears to offer the better rates in the forward market?
|
||||||||||
| Days | ||||||||||
| Period | Forward | C$/euro | US$/euro | |||||||
| spot | 1.3360 | 1.3221 | ||||||||
| 1 month | 30 | 1.3368 | 1.3230 | |||||||
| 2 months | 60 | 1.3376 | 1.3228 | |||||||
| 3 months | 90 | 1.3382 | 1.3224 | |||||||
| 6 months | 180 | 1.3406 | 1.3215 | |||||||
| 12 months | 360 | 1.3462 | 1.3194 | |||||||
| Days | Forward Premium | C$ Proceeds of | Difference | |||||||
| Period | Forward | C$/euro | on the C$/euro | € 12,000.00 | Over Spot | |||||
| spot | 1.3360 | |||||||||
| 1 month | 30 | 1.3368 | 0.722% | |||||||
| 2 months | 60 | 1.3376 | 0.705% | |||||||
| 3 months | 90 | 1.3382 | 0.659% | |||||||
| 6 months | 180 | 1.3406 | 0.693% | |||||||
| 12 months | 360 | 1.3462 | 0.765% | |||||||
| Days | Forward Premium | US$ Proceeds of | Difference | |||||||
| Period | Forward | US$/euro | on the US$/euro | € 12,000.00 | Over Spot | |||||
| spot | 1.3221 | |||||||||
| 1 month | 30 | 1.3230 | 0.817% | |||||||
| 2 months | 60 | 1.3228 | 0.318% | |||||||
| 3 months | 90 | 1.3224 | 0.091% | |||||||
| 6 months | 180 | 1.3215 | -0.091% | |||||||
| 12 months | 360 | 1.3194 | -0.204% | |||||||
| Please type your answer/comments here. | ||||||||||
We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.
Place Order Now