Suppose that Boeing corporation exported a Boeing 747 to British Airways and would receive £10 million in one year. Suppose that Boeing decides to use option market hedge, and it purchased a put option on 10 million pounds with a one-year maturity, an exercise price of $4/£, and an option premium of $0.02/£. Suppose the initial exchange rate when it enters into the option contract is also $1.4/£.a. а. Assume that the exchange rate turn out to be $1.30/£ in one year. What is Boeing's profit/loss from his option position? (Hint: you need to adjust for the option premium paid upfront) b. position relative to the initial exchange rate? С. hedged position relative to the initial exchange rate if in one year the exchange rate in one year turns out to be $1.5/£? What's Boeing profit/loss from his hedged What would be Boeing profit/loss from its

Given that price level of Singapore is 105, the price level of New Zealand is 125 and the real exchange rate Q(NZD/SGD) = 1.2000, what is S(NZD/SGD)? Choose the answer that is closest to your calculation. a. 0.9921 b. 0.7000 c. 1.0080 d. 1.4286

Suppose the interest rate in Japan is 9%, and inflation is expected to be 4%. Meanwhile, the expected inflation in Singapore is 11%, and the Australian interest rate is 14%. To the nearest whole number, what is the best estimate of the one - year forward exchange premium (discount) at which the Australian dollar would be trading at relative to the Singapore dollar? INSTRUCTIONS: 1. Be precise in the formulas you use. 2. Please input your final answer without percentage signs (%).

The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000?  Group of answer choices $10,937.50 and the Canadian investment is worse than the US investment $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment $10,937.50 and the Canadian investment is better than the US investment