The document contains 9 problems related to international financial management topics such as spot and forward rates, premiums and discounts, interest rates of different countries, and expected inflation rates. It also includes 2 multi-part problems analyzing the net present value and internal rate of return for projects in Thailand and India. Key calculations involve spot and forward exchange rates, interest rates, inflation rates, and present and future values of cash flows.
The document contains 9 problems related to international financial management topics such as spot and forward rates, premiums and discounts, interest rates of different countries, and expected inflation rates. It also includes 2 multi-part problems analyzing the net present value and internal rate of return for projects in Thailand and India. Key calculations involve spot and forward exchange rates, interest rates, inflation rates, and present and future values of cash flows.
The document contains 9 problems related to international financial management topics such as spot and forward rates, premiums and discounts, interest rates of different countries, and expected inflation rates. It also includes 2 multi-part problems analyzing the net present value and internal rate of return for projects in Thailand and India. Key calculations involve spot and forward exchange rates, interest rates, inflation rates, and present and future values of cash flows.
The document contains 9 problems related to international financial management topics such as spot and forward rates, premiums and discounts, interest rates of different countries, and expected inflation rates. It also includes 2 multi-part problems analyzing the net present value and internal rate of return for projects in Thailand and India. Key calculations involve spot and forward exchange rates, interest rates, inflation rates, and present and future values of cash flows.
Current spot rate, B/$ 43.75 3-month forward rate, B/$ 45.35 Spot rate at the time money is received 44.10 Total amount, no coverage, B million: [5 x 44.10] 220.5 Total amount, partial coverage, B million: [0.6 x 5 x 45.35 + 0.4 x 5 x 44.1 224.25 Total amount, full cover, B million: [5 x 45.35] 226.75 Cost of forward contract, full cover: [(45.35 - 44.10)/44.10](360/90) 11.34%