{"id":170644,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/business-finance-question-needed-today-by-5pm-pst-2"},"modified":"2017-08-18T05:52:50","modified_gmt":"2017-08-18T05:52:50","slug":"business-finance-question-needed-today-by-5pm-pst-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/business-finance-question-needed-today-by-5pm-pst-2\/","title":{"rendered":"Business Finance Question needed today by 5PM PST"},"content":{"rendered":"<p>1.&nbsp;&nbsp;&nbsp; Consider a U.S.-based company that imports goods from Switzerland. The U.S. Company expects to make payment on a shipment of goods in six months. Because the payment will be in Swiss francs, the U.S. Company wants to hedge against a negative change in the value of the Swiss franc over the next six months.&nbsp; The U.S. risk-free rate is 2 percent, and the Swiss risk-free rate is 6 percent. Assume that interest rates are expected to remain fixed over the next six months. The current spot rate is USD0.5842\/1CHF<\/p>\n<p>a.&nbsp;&nbsp;&nbsp; Indicate whether the U.S. Company should use a long or short forward contract to hedge currency risk.<\/p>\n<p>b.&nbsp;&nbsp;&nbsp; Calculate the no-arbitrage price at which the U.S. Company could enter into a forward contract that expires in six months.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>1.&nbsp;&nbsp;&nbsp; Consider a U.S.-based company that imports goods from Switzerland. The U.S. Company expects to make payment on a shipment of goods in six months. Because the payment will be in Swiss francs, the U.S. Company wants to hedge against <a href=\"https:\/\/www.benedictsol.com\/blogs\/business-finance-question-needed-today-by-5pm-pst-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-170644","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/170644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=170644"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/170644\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=170644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=170644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=170644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}