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At what future spot exchange rate do you think Boeing will be indifferent between the option and forward hedge? Answer: $ [l1] /€. (please leave 4 decimal points for your answer)

If Boeing uses MMH, the guaranteed dollar proceeds in one year should be $ [l1] million (Please write your number in million dollars and leave 3 decimal points if it is not a whole number. For example, if your answer is $500,000, write your answer as $”0.500″ million (write 0.5 in answer blank). If your answer is $50,300,000, please write your answer as $”50.300″ million.)

LECTURA DE COMPRENSIÓN Lee la conversación de Erick y Mateo “VIAJANDO POR SUDAMÉRICA” en la pregunta anterior, Luego decide si (if) la oración es cierto (True) o falso (False).

If Boeing hedges the exposure using an option hedge, total option premium: $ [l1] million will be paid today. The option premium will grow to $ [l2] million in one year at the US interest rate. In one year, if the spot price is $1.1 per euro, the option is [l3] (in/out) of the money. So, Boeing will sell 30 million euro at the price of $ [l4] per euro, which equals to a total proceeds of $ [l5] million. After the option premium, the total (net) dollar proceeds in one year is $ [l6] million. Note: Please write your number in million dollars and leave 3 decimal points if it is not a whole number. For example, if your answer is $500,000, write your answer as $”0.500″ million (write 0.500 in answer blank). If your answer is $50,300,000, please write your answer as $”50.300″ million.

If Boeing wants to hedge the transaction exposure using option hedge, Boeing should ______________.

A Mateo le gusta la comida de Perú.

Mateo caminó a Machu Picchu porque está muy cerca de Cuzco.

Mateo fue a Perú y Chile.

PREGUNTAS PERSONALES Usa oraciones completas en español para contestar las preguntas de abajo. Note: Necesitas escribir oraciones completas: sujeto + verbo + complemento. 1. ¿Te levantas temprano o tarde? 2. ¿Qué te gusta desayunar? 3.  ¿Fuiste a una fiesta anoche? 4. ¿Qué hacías durante las vacaciones?  

Questions 6-7 are based on the following information: If you have a A/P of Swedish Krona 2.5 million due in 3 months, and you would like to use euro futures contract from CME to hedge the risk. Assume today’s exchange rate is €1 = SEK8.2. The contract size for euro futures is €125,000 per contract. You should enter a _____ position in the Euro futures contract.