A company is due to receive €2,500,000 two-months from today and wishes to save the funds for three months. Money market interest rate spreads for short-term euro transactions are presented in the table below.     Money Market Euro Interest Rate Spreads (%) 1 month 2 months 3 months 4 months 5 months 6 months 0.20 - 0.25 0.28– 0.33 0.35 – 0.40 0.45 – 0.56 0.60 – 0.67 0.75 – 0.83   Assume that the company wishes to undertake a money market hedge to fix the future deposit rate. Explain the character of the company’s interest rate risk exposure and calculate the annualised forward interest rate that it can achieve using the current interest rates. Base calculations on months rather than days

) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£. Which of the two currencies is trading at forward premium?

An investor starts with €1 million and converts them to £694,500 which is then invested for one year. In a year the investor has £736,170 which she then converts back to euros at an exchange rate of 0.68 pounds per euro. The annual euro rate of return earned was .0775 .06 .0826 .0813

company will receive €75 million in 1 year from an Italian customer. observe the following data. $:€ Spot Rate $1.25:€1.00 $:€ Forward Rate $1.30:€1.00 How many USD will you receive if you employ a forward hedge

(U2.3,Q25) The following table shows annual rates for various types of loans in 2015. Assume monthly payments and compounding periods.  LoanType 30-YearMortgage 15-YearMortgage 5-YearCar Loan 4-YearCar Loan CreditCards OctoberRate (%) 3.93 3.14 4.30 4.24 13.10 NovemberRate (%) 4.09 3.31 4.31 4.26 13.10 DecemberRate (%) 4.09 3.34 4.34 4.29 13.10 You purchased a $25,000 car using a 5-year loan in October 2015. With the same monthly payments, how much could you have financed had you waited until November? (Do not round the payment amount to the nearest cent. Round the final the final amount you could have financed to the nearest cent.) $ ____   With the same monthly payments, how much could you have financed had you waited until December? (Do not round the payment amount to the nearest cent. Round the final the final amount you could have financed to the nearest cent.) $ ____

Use the information below to answer the following question. So($/€) F360 ($/€) Exchange Rate $ 1.45 € 1.00 = $ 1.48 = € 1.00 Interest Rate APR is i€ 4% 3% If you borrowed $1,000,000 for one year, how much money would you owe at maturity? Short Answer Toolbar navigation BIUS $1,524,400 A RN KE