國際金融資本預(yù)算以貨幣風(fēng)險(xiǎn)(編輯修改稿)
2025-02-27 03:09 本頁面
【文章內(nèi)容簡介】 Q: What does it mean to a business if the dollar is trading at a forward premium? Exchange Rates Applications Q: What does it mean to a business if the dollar is trading at a forward premium? A: Stronger purchasing power Exchange Rates Example Honda builds a new car in Japan for a cost + profit of 1,715,000 yen. At an exchange rate of :$1 the car sells for $16,950 in Baltimore. If the dollar rises in value, against the yen, to an exchange rate of 105:$1, what will be the price of the car? Exchange Rates Example Honda builds a new car in Japan for a cost + profit of 1,715,000 yen. At an exchange rate of :$1 the car sells for $16,950 in Baltimore. If the dollar rises in value, against the yen, to an exchange rate of 105:$1, what will be the price of the car? 1,715,000 = $16,333 105 Exchange Rates Example Honda builds a new car in Japan for a cost + profit of 1,715,000 yen. At an exchange rate of :$1 the car sells for $16,950 in Baltimore. If the dollar rises in value, against the yen, to an exchange rate of 105:$1, what will be the price of the car? 1,715,000 = $16,333 105 Conversely, if the yen is trading at a forward discount, Japan will experience a decrease in purchasing power. Exchange Rates Example Harley Davidson builds a motorcycle for a cost plus profit fo $12,000. At an exchange rate of :$1, the motorcycle sells for 1,214,160 yen in Japan. If the dollar rises in value and the exchange rate is 105:$1, what will the motorcycle cost in Japan? Exchange Rates Example Harley Davidson builds a motorcycle for a cost plus profit fo $12,000. At an exchange rate of :$1, the motorcycle sells for 1,214,160 yen in Japan. If the dollar rises in value and the exchange rate is 105:$1, what will the motorcycle cost in Japan? $12,000 x 105 = 1,260,000 yen (% rise) Currency Risk ? Currency Risk can be reduced by using various financial instruments ? Currency forward contracts, futures contracts, and even options on these contracts are available to control the risk Currency Risk Example Your US pany is building a plant in Germany. Your cost will be 2,000,000 dm, with full payment due in 6 months. You are concerned about currency risk. The spot rate is :$1 and the 6 mt forward rate is :$1. How can you eliminate the currency risk? How does this help in evaluating the project? Currency Risk Example Your US pany is building a plant in Germany. Your cost will be 2,000,000 dm, with full payment due in 6 months. You are concerned about currency risk. The spot rate is :$1 and the 6 mt forward rate is :$1. How can you eliminate the currency risk? How does this help in evaluating the project? Since you are long in dollars, you should short dm contracts Currency Risk Example Your US pany is building a plant in Germany. Your cost will be 2,000,000 dm, with full payment due in 6 months. You are concerned about currency risk. The spot rate is :$1 and the 6 mt forward rate is :$1. How can you eliminate the currency risk? How does this help in evaluating the project? ?Since you are long in dollars, you should short dm contracts ?2,000,000dm / = $1,393,728 worth of 6mt dm Ks. Currency Risk Example Your US pany is building a plant in Germany. Your cost will be 2,000,000 dm, with full payment due in 6 months. You are concerned about currency risk. The spot rate is :$1 and the 6 mt forward rate is :$1. How can you eliminate the currency risk? How does this
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