QUESTION 16 The following information is to be used in answering the next questi
ID: 2757067 • Letter: Q
Question
QUESTION 16
The following information is to be used in answering the next question.
Suppose Alcoa has a payable of SF 1 million due in one year. Alcoa's cost of the payable using a money market hedge is ______ and its cost using a forward market hedge is _______.
$173,900; $177,470
$174,925; $176,300
$176,671; $172,900
$178,937; $174,700
5 points
QUESTION 17
The spot and 30 day forward rates for the Dutch guilder are $.3075 and $.3120, respectively. The guilder is said to be selling at a forward
premium of 19.51%
premium of 17.56%
premium of 9.76%
discount of 17.56%
$173,900; $177,470
$174,925; $176,300
$176,671; $172,900
$178,937; $174,700
Explanation / Answer
16)
The correct option is option D that is $178,937; $174,700.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.