【单选题】US firm submitted a fixed bid for a Euro multimillion project in Ukraine. The contract will be awarded in 12 months and the company knows there will be no advance payments. The company
A.
should pay the premium for a 3 months put currency option to hedge the quotation exposure.
B.
should write 3 months put currency option, receive the premium and roll it forward.
C.
should buy 12 months put option and limit the loss to the premium amount if the bid gets rejected.
D.
should get 1 year Euro denominated loan equal to the bid amount.
【多选题】A credit required the goods should be shipped by 12 monthly installments and before the 5th day of each month. The goods were shipped as scheduled from Junuary to May, while the seller failed to make...
【单选题】Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow £5,000,000 fixed for 5 years. The exchange rate is $2 = £1 and is not expected to change over the next 5 years. Th...
A.
They should borrow $10,000,000 at $10%
B.
They should borrow £5,000,000 at 10.50% interest-only for five years; translate pounds to dollars at the spot rate.
C.
They should borrow £5,000,000 at £10.50% interest-only for five years; translate pounds to dollars at the spot rate; enter long position in a forward contract to buy £5,000,000 in five years.
【单选题】Homer's Holesome Donuts has determined that its profit-maximizing quantity is 10,000 donuts per year. Homer's earns $12,000 in revenue from the sale of those donuts. Homer's has two costs. First he pa...
A.
Yes, because he is incurring an economic loss.
B.
Yes, because all costs are fixed in the long run.
C.
No, because he is making an economic profit.
D.
No, because all costs are variable in the long run.