Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose your company imports cars from germany. th

Suppose your company imports cars from Germany. The exchange rate is currently 10.05 / ....

60.1K

Verified Solution

Question

Finance

Suppose your company imports cars from Germany. The exchange rate is currently 10.05 / . You have just placed an order for 50 cars at a cost to you of 100,000 each. You will pay for the shipment when it arrives in 50 days. You can sell the cars for 1,100,000 each.

a)What is your profit at Turkish Lira?

b)What is your profit if the exchange rate goes up to 10.50 / ?

c)What is your profit if the exchange rate goes down 9.50 / ?

d)What is the break-even exchange rate?

e)How can you hedge your company against exchange rate risks?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

a recent study in compare the time spent together by a single and dual earner couples...

Basic Math
Q

A. Here is a bivariate data set. x y 25.7 52.5 29.4 64.7 21.8 54.9 35 63.4 31.4 74.7 21.6 46.5 40.8 69.7 37.9 77.7 16.7 41.1 29.6 78.1 13.1 45.5 36.1 78.4 32.1 68.2 45.2 76.8 36.1 57.9 Find the correlation coefficient and report it accurate to...

Basic Math
Q

100 mL of a saturated solution of magnesium palmitate, Mg(C16H31O2)2, is prepared at 25 °C. The...

Chemistry
Q

Briefly describe the main similarities and differences between the threshold phenomena for the stochastic general epidemic...

Advance Math
Q

A friend of yours is loudly singing a single note at 363 Hz while driving...

Physics
Q

Find maximum distance between two particles in SHM along two parallel close line with same...

Physics
Q

A block A of mass m moving with a velocity v along a frictionless horizontal...

Physics
Q

Revenue and elasticity The price demand equation for hamburgers at a fast food restaurant is...

Calculus
Q

Let f(x) = (x + 8)Find a domain on which f is one-to-one and non-decreasing.Find...

Algebra
Q

The polynomial function f has exactly one positive zero Approximate the zero correct to two...

Algebra
Q

Simplify Your answer should contai 2x y 4 4 3 x y x 3 A...

Algebra
Q

how do you prepare a common sized income statement?

Accounting