MSc Finance : Assignment title: Cartmel Enterprises Task 1 Calculations Task 2 Report

MSc Finance : Assignment title: Cartmel Enterprises Task 1 Calculations Task 2 Report

More details see files.

Requirements
Task 1 Calculations (30%) (this part i sent you a sample work)
Using the information provided about the transaction and the exchange rate information in Appendix A:
(a) Calculate the potential cross rate that could be used as a substitute official rate for the Sierra Nuevo peso/ and the potential unofficial exchange rate that may be available for the receipt of Sierra Nuevo pesos;
(b) Calculate the expected futures price as at 1 November;
(c) Calculate the outcomes from each of the forms of currency hedge that are available to Cartmel Enterprises:
(i) Forward rate agreement
(ii) Futures
(iii) Options
Note:
You should assume that on 1 November the spot rate is $/ 1.6528.
Task 2 Report (65%)
Write a report for the Board of Cartmel Enterprises. Your report should:
(a) Outline two risks, other than currency risk, that may arise from trading with ZZ Hotels and suggest ways to manage these (indicative word count = 400);
(b) Briefly explain how the Black-Scholes (BS) model may be modified to calculate the price of a currency option (no calculations are required) (indicative word count = 250);
(c) Briefly explain two theories that may be used to calculate future exchange rates (indicative word count = 450)
(d) Using your calculations from Task 1, critically evaluate the alternative forms of currency hedge that are available to Cartmel Enterprises and identify the expected revenues, in sterling, from the sale to the company in Sierra Nuevo as a result of each of these hedges (indicative word count = 750);
(e) Provide a reasoned recommendation as to which hedge should be selected (indicative word count = 300).
The remaining 5% will be given for the layout, structure and referencing within your report.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 10% with the discount code DHCOVID10