over 3 years ago

anyone please help me calculate the question

a) Mwenyeji Importers Ltd, a company based in Kenya, has been a regular importer of goods from the United States of America (USA). The Kenyan currency is the Shilling (Sh.) while the USA currency is the dollar ($). On 1 June 2016, Mweyeji Ltd imported a consignment of goods from a supplier in the USA. The consignment cost $1,000 and was payable on 1 September 2016. The spot rates on 1 June and 1 September 2016 were as follows: $/Sh. 1 June 0.007 1 September 0.006 In September 2016 shilling futures were trading at $0.00625/Sh (contract size Sh.1, 194,000) as at 1 June 2016. Required: i). Show how Mwenyeji Ltd could have used a futures contract as a hedging tool, indicating any hedging profit or loss. (6 Marks) ii). How many futures contracts would Mwenyeji Ltd. have purchased if the contract size was Sh.2 million?

nay_22

almost 4 years ago

International Finance and Trade

The Covid-19 impact on domestic market, cost of capital and currencies

· How COVID-19 affect the domestic market · Discuss your views on the real impact of COVID-19 on firm’s cost of capital (HOW and WHY?). Justify your discussion with a practical example of a company listed on Bursa Malaysia by comparing TWO years before (2017&2018) and TWO years (2019 & 2020) COVID-19 period. · How COVID-19 affect international capital market. In general, does the market value of companies reduced or increased? · How Covid-19 impact the price of MYR? · Is there any impact to the major currencies such as USD, EUR, JPY, GBP and CNY?

Raymond36

almost 5 years ago

International Finance and Trade