a) What is the calue of holdings , based on U.S. dollars, at the year end?

Q: An American investor achieved a 50% return in Turkish Lira (TRY) from his stock investment in…

A: In the exchange rate  , price of one currency  in terms of other currency. Generally the exchange…

Q: o buy put options on Singapore dollars. What is Samuel's (net) profit/loss

A: current spot rate is $1.39/S$expected spot price at 90 days is $1.34/S$spot price at 90 days is…

Q: bs Away, an American gaming MNC with a subsidiary in Thailand expects to receive 30 million, 40…

A: Value of subsidiary would be the present value of cash flow from the subsidiary that are going to be…

Q: Purple Corp starts a subsidiary in a foreign country in 2020; the subsidiary has the peso as its…

A: The consolidation of financial statement is very important to have a single financial statement for…

Q: Ipanema Beach, a Brazilian Company, is considering establishing an operation in the United States to…

A: A Brazilian business called Ipanema Beach is assessing a possible US investment to manufacture and…

Q: An investor in the United States bought a one-year Brazilian security valued at 250,000 Brazilian…

A: To compute: The return to the investor on her initial investment of $200,000.

Q: After all foreign and U.S. taxes, a U.S. corporation expects to receive 4 pounds of dividends per…

A: Present value refers to the current worth of a future sum. The dividend growth rate refers to the…

Q: You work for Funky Turtle Limited, which is a firm whose home currency is the Australian dollar…

A: Net Present Value (NPV) is a financial tool used to assess the value and profitability of an…

Q: Suppose you conduct currency carry trade by borrowing $1,000,000 at the start of each year and…

A: Borrowing = $1,000,000Exchange rate on January 1,2000 = NZ$1.9104/$

Q: Suppose that Cleveland Co. engages in international business, with transactions denominated in four…

A: We need to calculate the net inflow or outflow for each currency and then convert these amounts into…

Q: A Canadian bank has operations in USA. 65% of their net cash flow is from Canadian operations and…

A: Net cashflow:Net cash flow, in the context of this scenario, refers to the total cash inflows and…

Q: Translate into dollars the balance sheet of Nevada Leather Goods' Spanish subsidiary. When Nevada…

A: Currency translation refers to the process of changing one currency into another currency based on…

Q: Below you can find the memoranda for the country called LALALA. All values are in millions of US…

A: Balance of payment calculated by considering the international transaction payment and receipt of a…

Q: Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen…

A: The balance sheet is a financial report which deposits the financial position of an entity at a…

Q: Postal Express has outlets throught the world. It also keeps funds for transactions purposes in many…

A: Brazil reals = 200,000 US Dollar = 130,000 Interest rate = 10% Real went up = 12%

Q: Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank quotes € 1 = US$1.1758.BNZ Bank quotes € 1 =…

A: Given: Money has been quoted by different banks as Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank…

Q: Assume that Blue Bell has expected cash flows of $325,000 from domestic operations, SF250,000 from…

A: Cash flows is the amount which is being transferred in & out of business operations.

Q: A U.S. bank converted $50 million to euros to make a euro loan to a valued corporate customer when…

A: Initial exchange rate: €0.625/$Initial Euros = $50,000,000 * 0.625Initial Euros = €31,250,000

Q: SinTell has USD $24 million in excess cash that it has invested in China at an annual interest rate…

A: An exchange rate is the rate at which the currency of home country can be exchanged with the single…

Q: Samuel Samosir works for Peregrine Investments in Jakarta, Indonesia. He focuses his time and…

A: The objective of the question is to calculate the net profit or loss for Samuel Samosir, who has…

Q: As an employee of the foreign exchange department for a commercial bank in USA, you have been…

A: The global market where currencies are traded is known as foreign exchange currency, or forex or FX…

Q: Your Boston-headquartered manufacturing company, Wruck Enterprises, obtained a 55-million-peso loan…

A: Loan Amount = 55000000 peso Exchange rate = 14 US cents/peso Dropped Exchange rate =6 US cents/peso…

Q: MNC is a U.S. company with the following 1.  Sales to Canada amounting to C$18 million. 2.…

A:

Q: Consider the balance-of-payments accounting the table below. All values are in billions of dollars…

A: The export represents the capital inflow whereas, the import represents the capital outflow.

Q: The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in…

A: Investment refers to the financial asset that is to be bought and sold at profit at some future…

Q: Crane Pharma just received revenues of $3,164,400 in Australian dollars (A$). Management has the…

A: The exchange rates refer to the rate at which the currency of one country can be exchanged for that…

Q: Suppose a US firm was producing all its goods in Mexico and selling them in the Euro area, at a time…

A: Currency appreciation: When the value of a currency increases as against the other, then it is known…

Q: Last year, your company sold electronic products to Brazil. You are expecting to receive Real…

A: Hedging is a technique in general used by commodity buyers/sellers to mitigate their risk in the…

Q: Required: Calculate the contribution to total performance from currency, country, and stock…

A: See the answer in the explanation field.Explanation:Step 1:Currency Selection:EAFE:EAFE Weight *…

Q: Suppose one year ago, Hein Company loan payables outstanding in British pound valued at 440,000…

A: Loss=Current value - Value of One year ago.

Q: A country in Southeast Asia states it's gross domestic product in terms of yen. Last year it's GDP…

A: A relative price of one currency stated in terms of another currency is called an exchange rate (or…

Q: A U.S. bank converted $6 million to Swiss francs to make a Swiss franc loan to a valued corporate…

A: Amount In Swiss franc =Amount in USD * Exchange rate on loan date  = 6,000,000*1.153 = 6918000

Q: Suppose that you are a currency speculator, based in the U.S., att January 1st, the spot rate for…

A: To calculate the amount of US dollars needed to purchase C$160,000.00 in the spot market, we can use…

Q: to sell call options in Singapore dollars. What is Samuel's (net) profit/loss (in

A: current spot rate is $1.39/S$expected spot price at 90 days is $1.35/S$spot price at 90 days is…

Q: Megahurtz International Car Rentals has rent -a-car outlets throughout the world. It keeps funds for…

A: Currency appreciation refers to the increase in the value of a home currency with respect to other…

Q: pose you are a euro-based investor who just sold Amazon.com Inc. shares that you had bought six…

A: First we need to determine the number of shares bought using the formula below:Now we can determine…

Q: exchange gain or loss

A: As per IAS 21 ( The effect of changes in foreign exchange rates), a foreign currency monetary item…

Q: The treasurer of a major U.S. firm has $38 million to invest for three months. The interest rate in…

A: 1 a. U.S. InvestmentWorth of the investment after 3 months = 38000000 x (1.0055)^3= $30497727.49 1…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.