28 663
Assignments Done
98,4%
Successfully Done
In August 2015
Your physics homework can be a real challenge, and the due date can be really close - feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.

# Answer on Economics of Enterprise Question for LaMarcus Streeter

Question #7226
3. Stover Corporation, a U.S. based importer, makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $24,000, at the spot rate of 1.665 francs per dollar. The terms of the purchase are net 90 days, and the U.S. firm wants to cover this trade payable with a forward market hedge to eliminate its exchange rate risk. Suppose the firm completes a forward hedge at the 90-day forward rate of 1.682 francs. If the spot rate in 90 days is actually 1.638 francs, how much will the U.S. firm have saved or lost in U.S. dollars by hedging its exchange rate exposure? a. -$396
b. -$243 c.$0
d. $243 e.$638

Saving = (Spot rate (purchase) - Spot rate (actual))*Amount of money
S = (1.665 - 1.638)*24,000 = $638 #### Comments Shelly 07.03.2012, 15:27 e.$638
SF/SR forward SF/SR at 90 Gain Loss
39960/1.682 = 23757.74 39960/1.638= 24395.60 23757.74-24395.60=-637.86

Expert can verify :)

#### Share with friends

More subjects:
I'm very impressed with the work done. It was fast and efficient. I would order the work to be done and I would receive it the very next day, or even faster.
I'm extremely happy at the level of professionalism you guys do business. It keeps me relaxed, free and content knowing that you guys can complete the job.
One little thing I would like to add though. Sometimes the programmers deviate from the specifications of the assignment and that causes a little bit of a problem.
To reduce unnecessary 'sending emails to and from' all the time, it would be great of the programmer actually pays attention to every small detail in the specs.
Also, sometimes the prices are just too high. Being a student it gets a bit hard to pay for it.
Overall, I'm very happy with the service and have already recommended it to my friends. I'll be using your website again in the near future. Till then, keep up the good work guys!

Sana on May 2013
Pay us safely via PayPal
We deliver professional assignment and homework help for students in USA, UK, Canada, Australia, AE and all over the world.