Problem 7.05 – Kapinsky Capital Geneva​ (B)
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
Determine Christoph’s expected profit from a pure spot market speculation, and also if he buys or sells SF forward.
Determine Christoph’s expected profit from a pure spot market speculation, and also if he buys or sells SF forward.
Determine Peleh’s profit or loss given various spot rates assuming Peleh writes a put option on the Japanese yen.
Given a table of info on put and call options on the yen, figure out what Cachita should do. Then calculate the breakeven, gross profit, and net profits.
Determine the profit or loss for Henrik on call options on the euro at various spot rates.
Calculate the simple and annualized yields for the 3-month and 6-month Treasury bills based on the provided data.
Determine the monthly payment on the house given a 15-year and 30-year mortgage.
Botany Bay has three alternatives to analyze: a fixed rate for 2 years, LIBOR + % which resents every six months, and borrowing fixed for one year, but then having to negotiate for a new one-year loan thereafter.
Determine the gain or loss on the interest rate futures.
Determine the savings or costs for the swap given that LIBOR rises or falls by various basis points.
Calculate the annual payment for a loan with a fixed maturity for a sovereign borrower, taking into account an amortizing structure. Consider the impact of negotiating for various interest rates given by international banks.