baber makayla bu440 managerial finance ii assignment 8

In a landscape filled with online academic writing options, urgentpaperwriters.com presents itself as a promising platform for students seeking reliable assistance. Its strong reputation, dedication to quality, expertise of writers, effective communication, and commitment to timely delivery collectively contribute to its appeal. However, as with any service, it’s essential for students to conduct their own due diligence before engaging with any online platform. Choosing the right academic writing assistance through urgentpaperwriters.com can significantly contribute to a student’s academic success and growth.

Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length;

NOTE: Show all work in arriving at the solutions requested.

1. The Wall Street Journal reported the following spot and forward rates for the Swiss franc:

Spot…………………….	$0.7876
30-day forward…………	$0.7918
90-day forward…………	$0.7968
180-day forward……….	$0.8039

a. Was the Swiss franc selling at a discount or a premium in the forward market?

b. What was the 30-day forward premium (or discount)?

c. What was the 90-day forward premium (or discount)?

d. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?

e. Assume a Swiss bank entered into a 180-day forward contract with Citicorp to buy $100,000. How many francs will the Swiss bank deliver in six months to get the U.S. dollars?

2. Explain the functions of the following agencies:

a. Overseas Private Investment Corporation (OPIC)

b. Export-Import Bank (Eximbank)

c. Foreign Credit Insurance Association (FCIA)

d. International Finance Corporation (IFC)

3. You are the vice-president of finance for Exploratory Resources, headquartered in Houston, Texas. In January 2007, your firm’s Canadian subsidiary obtained a six-month loan of 100,000 Canadian dollars from a bank in Houston to finance the acquisition of a titanium mine in Quebec province. The loan will also be repaid in Canadian dollars. At the time of the loan, the spot exchange rate was U.S. $0.8180/Canadian dollar and the Canadian currency was selling at a discount in the forward market. The June 2007 contract

(Face value = $100,000 per contract) was quoted at U.S. $0.8120/Canadian dollar.

a. Explain how the Houston bank could lose on this transaction assuming no hedging.

b. If the bank does hedge with the forward contract, what is the maximum amount it can lose?

Meeting deadlines is essential in the realm of academia, and urgentpaperwriters.com acknowledges this by emphasizing timely delivery. The platform prides itself on its ability to provide completed assignments within the specified timeframe, enabling students to meet their academic obligations without stress or anxiety. In addition to its writing services, urgentpaperwriters.com offers robust customer support. A responsive customer support team is available to address queries, concerns, and issues that clients may encounter. This feature fosters a sense of reliability and customer-centricity, creating a positive user experience. Furthermore, the platform promotes effective communication between clients and writers. This feature allows students to discuss their requirements, provide additional instructions, and clarify doubts during the writing process. This collaborative approach not only enhances the quality of the final product but also empowers students to actively participate in the creation of their assignments.

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.