# Assume you are the CFO of AIFS. Your analyst reports the following information (Use the following...

###### Question:

Assume you are the CFO of AIFS. Your analyst reports the following information (Use the following information for the remainder of the assignment):

• Current exchange rate is $1.16/€. • Forward rate is$1.185/€.

• Expected final sales volume is 30,000. Worst case scenario is volume of 10,000. Best

case scenario is volume of 36,000.

• Cost per student is €2500.

• Option premium is 2% of USD strike price.

• Option strike price is $1.165/€. 4. Using the above information a) What is the total projected costs (for all three scenarios) in dollars at the current exchange rate? b) What are the total costs (for all three scenarios) if you use a forward contract to hedge? c) What is the total option premium for each scenario? 5. As the CFO, you decided not to hedge. Assuming expected final sales volume is 30,000, what are your total costs a) if the exchange rate remains at$1.16/€? Let’s call this the baseline scenario.
b) if the exchange rate will be $1.25/€? How does this compare to the baseline case? c) if the exchange rate will be$1.08/€? How does this compare to the baseline case?

6. As the CFO, you decided to hedge using forward contracts. Assume that the expected final sales volume is 30,000. What are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)

a) if the exchange rate remains at $1.16/€? b) if the exchange rate will be$1.25/€?
c) if the exchange rate will be $1.08/€? Dr. Ruchith Dissanayake School of Economics and Finance Semester 1, 2019 QUT Business School | QUT 7. As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 30,000, what are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging) a) if the exchange rate remains at$1.16/€? b) if the exchange rate will be $1.25/€? c) if the exchange rate will be$1.08/€?

8. What is the most profitable strategy for the case in which the expected final sales volume is 30,000 (no hedge, forward contract, or option contract)

a) if the exchange rate remains at $1.16/€? b) if the exchange rate will be$1.25/€?
##### 4. For each of the following, compute the integral or show it doesn't exist: 2 1...
4. For each of the following, compute the integral or show it doesn't exist: 2 1 (a) SR3 dV R3 1+x2 + y2 +22 (b) Sc (22+42 2dA where C = {(x,y) : x2 + y2 < 1} (c) Ss zvydA where S dA where S = {(x, y):1 < x,0 <y <} 1 9 9...
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Ihe Maclaurin series exDunslan for cos C08 I=1 - Starting with Ihe one tettn appl oxlmatlon_ compute the Hun add terms one und approxlmate Alinie percent relullvc estimale euols LosJi Use your culculator Allet euch IGN tetm absoluta valuc the approximate dcermilruc added: Lto eslmiatc voile Add of t...
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##### 0 Assignment Score:78.900ResourcesGive Up?FeedbackQuestion 6 of 11How many moles of boron, B, are in 1.67 X 1024 B atoms?21 2.364 XlO1.67 X 1024 B atomsIncorrect
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CUCep UJUH 0. Suppose that the economy is depicted by the following relationship: Expenditures =C+I+G+X where: C = $100+ 0.80 (Y-T) G=$ 600 T= $600 I=$300 X = $150 The economy is in equilibrium at a level of real GDP or income of$ 3,350 (Round your answer to the nearest dollar:) Now suppose that...
##### A store finds that its sales revenue changes ata rate given by Ste) = -3012 + 340t dollars per day where t is the number of days after an advertising campaign ends and 0 < t < 30. (a) Find the total sales for the first week after the campaign ends (t = 0 to t = 7).(b) Find the total sales for the second week after the campaign ends (t = 7 to t = 14).Need Help?Rea
A store finds that its sales revenue changes ata rate given by Ste) = -3012 + 340t dollars per day where t is the number of days after an advertising campaign ends and 0 < t < 30. (a) Find the total sales for the first week after the campaign ends (t = 0 to t = 7). (b) Find the total sales for...
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##### Identical point charges (+20 pC) are placed at the corners of an equilateral triangle with sides of 2.0 m length: How much external energy is required to bring a charge of 45 HC from infinity to the midpoint of one side of the triarlgle? Point)0 35J12]0 15 1 0.21,28 J
Identical point charges (+20 pC) are placed at the corners of an equilateral triangle with sides of 2.0 m length: How much external energy is required to bring a charge of 45 HC from infinity to the midpoint of one side of the triarlgle? Point) 0 35J 12] 0 15 1 0.21, 28 J...
##### A hypothesis testing: H0: p=0.56 HA: p>0.56. We conduct asurvey with sample size n=806 and have pË†=0.80. Find the teststatistic z associated with the sample proportion.
A hypothesis testing: H0: p=0.56 HA: p>0.56. We conduct a survey with sample size n=806 and have pË†=0.80. Find the test statistic z associated with the sample proportion....
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##### 1 1 ! Law cllbrutlon 3 1 Lamnioa V { 1concentrton 1 VL U rcadlng al 0.95 1 1 ruplnaut 1
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##### 03 -3 15 -15 ~2 -3 4 0 -3 6 -301 50point) Let A =Find a basis for the row0N-2-1space of A, a basis for the column space of A, a basis for the null space of A, the rank of A, and the nullity of A. (Note that the reduced row echelon form of A 0 0 3 -3 0 -2 0is0 0 ]Row Space basis:Column Space basis: Null Space basis:Rank:Nullity:
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View Policies Current Attempt in Progress Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31 2020 Cash $15.000 Accounts receivable (net) 70,000 Inventory 61,000 Plant assets (net) 195,000$341,000 Accounts payable $50,000 Mortgage payable (15%) 101,5... 2 answers ... 1 answer ##### During the preparation of your dish, the chemical composition of each ingredient plays a role in ... During the preparation of your dish, the chemical composition of each ingredient plays a role in the texture, aroma and appearance of the final product. Use the table below to describe the chemical composition (molecules, elements, ions, etc.) for the basket ingredients and its corresponding chemica... 5 answers ##### SJaMSuv llwansSJaMsuv IW Mamnaid"lubiqold Slu} UO Jlpaj Ieiued uJea ue? nok :DON(n*)f (6eD)if (6'T)"f (6 T)H3h nt(h c)fuoljunj 241 J0 saaneAuap IeQued 341 pUI: ((szujod 9waidold IXaNJSI | waiqoldwaidold snomald SJaMSuv llwans SJaMsuv IW Mamnaid "lubiqold Slu} UO Jlpaj Ieiued uJea ue? nok :DON (n*)f (6eD)if (6'T)"f (6 T)H 3h nt (h c)f uoljunj 241 J0 saaneAuap IeQued 341 pUI: ((szujod 9 waidold IXaN JSI | waiqold waidold snomald... 4 answers ##### QUZSTIOR 3SI units, thc clectric field ancletmnaencuc wvc describcd by 300. sin([.00 [0 : where thc index represcnts the dircction of the vector (E, mcans clcctric field dinected Flong I-QLA What is the expression of thc magnctic fiela?OB 300. sin(].00 x 10 = - @t) OB = 1.00*10 * sin(1.00 10" = B, = [.00*[0 * stn(1.00 10' z - @t)B, = [.00*10* sin(].00 * 10 =300. sin(].00 * 10 < + @t)L.CO*10* sin(L.0Q * I0 z - @t)300. sin([.00 * 10 z + @t)8, = 300.sin(].00 10 < - ct)8, = 1.00*10 QUZSTIOR 3 SI units, thc clectric field ancletmnaencuc wvc describcd by 300. sin([.00 [0 : where thc index represcnts the dircction of the vector (E, mcans clcctric field dinected Flong I-QLA What is the expression of thc magnctic fiela? OB 300. sin(].00 x 10 = - @t) OB = 1.00*10 * sin(1.00 10"... 1 answer ##### Presented below is information related to Waterway Corp. for the year 2020. Net sales$1,508,000 Write-off...
Presented below is information related to Waterway Corp. for the year 2020. Net sales $1,508,000 Write-off of inventory due to obsolescence$92,800 Cost of goods sold 904,800 Depreciation expense omitted by accident in 2019 63,800 Selling expenses 75,400 Casualty loss 58,...
##### For the function z = f(x,y)5x 9y7 8xy , find6,(4,4) and f,(4,4)1,(4.,4) = (Simplify your answer ){(4,4) = (Simplify your answer )
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##### The EOQ model assumes that we have perfect information about holding and ordering costs. Considering this...
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##### Question Two (6pts)When ball is thrown with initial velocity of 32 ft/s at an angle of 30 degrees from the horizonta the parametric equation below will give the position of the ball after seconds, where X and V are measured in feet:(32 cos 30t (32 sin 30')t 16t2(a) Complete the table below: Round to one decimal place_0.250.50.75(b) Sketch the curve represented by the parametric equations for 0 < t < 1 using the points from the table a5a guide: Use arrows to indicate the direction of t
Question Two (6pts) When ball is thrown with initial velocity of 32 ft/s at an angle of 30 degrees from the horizonta the parametric equation below will give the position of the ball after seconds, where X and V are measured in feet: (32 cos 30t (32 sin 30')t 16t2 (a) Complete the table below: ...
##### What is a cubic spline? Explain how the limited functionality of a cubic curve is overcome by using a cubic spline. In designing shapes using curves, which method would you prefer, Lagrange polynomia...
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##### In the laboratory; hydrogen gas usually made by the following reaction: Znls) HCIlaq) Hzlg) ZnClzlaq) How many liters of Hz gas, collected over water at an atmospheric pressure of 758.9 mm Hg and temperature of 46.9*C , can be made from 69 g of Zn and excess HCI? The partia pressure of water vapor is 18.91 mm Hg at 21.0*C. Make sure You use this partial pressure when calculating the pressure of the Hz ga5. Record your answer with decimals_
In the laboratory; hydrogen gas usually made by the following reaction: Znls) HCIlaq) Hzlg) ZnClzlaq) How many liters of Hz gas, collected over water at an atmospheric pressure of 758.9 mm Hg and temperature of 46.9*C , can be made from 69 g of Zn and excess HCI? The partia pressure of water vapor i...
##### Question 22 (2 points) Find the sum of the geometric series.fa}tA) 500B) 58C) 583D) 546
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##### *眇ourse careers , Set 02 (0U29 T, DO PM) , Marble cn the table A very...
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