Calculate the expected sterling receipts in one month and in three months using the forward market. Original Answers Only


1.Answer and show working out with the following maths questions:

Assume the following information

  Quoted price
Spot rate of Euro 0.80 USD
90 day forward rate of Euro 0.79 USD
90 day European interest rate 4%
90 day U.S interest rate 2.5


Given the information above, discuss if covered interest arbitrage worthwhile for an US investor who has US dollars to invest (assume the investor invests $1,000,000) Explain with calculations.

2.Read the following information to answer the questions d and e

  • Newton Co is a UK based multinational company that has the following expected transactions
  • One month      Receipt of $240,000
  • One month      Receipt of $140,000
  • Three month   Receipt of  $300,000
  • Newton Co’s finance manager has collected the information below
  • Spot rate ($ per £): 1.7820 + 0.0002
  • One month forward rate ($ per £): 1.7829 + 0.0003
  • Three months forward ($ per £): 1.7846 + 0.0004
  • Money market rates for Newton Co:
  Borrowing Deposit
One year sterling interest rate 4.9% 4.6%
One year dollar interest rate 5.4% 5.1%


Assume that it is 1 April now

  1. d) Calculate the expected sterling receipts in one month and in three months using the forward market.
  2. e) Calculate the expected sterling receipts in three months using a money market hedge and recommend whether a forward market hedge or a money market should be used

3.Complete the following question

  • The Gamma Co. have contracted to purchase steel from Beta Co. in the Netherlands at a cost of EUR 20,000,000
  • Delta bank in Amsterdam quotes USD/EUR as 0.8325 and GBP/USD as 1.3343
  • Alfa Bank in UK FX quotation for GBP/EUR is 1.1267
  • 1 year money market interest rates for EUR are 2% and for GBP 4% (per annum)
  • Annualised inflation in the Eurozone is 1% and in the UK it is 3.5%
See also  At what time, in years, is the instantaneous rate of change of the value of the account increasing by $37,412.18 per year?

Calculate the cost in GBP to Gamma Co of conducting the spot rate FX transaction with Delta Bank or Alfa Bank and which would they use?

If Relative Purchasing Power Parity held what would you expect the GBP/EUR exchange rate to be in 6 months’ time? ( base calculations on a spot GBP/EUR rate of 1.1267

4Answer and show calculations for the following questions below :

A British company is considering investing in Malaysia due to cheaper labour rates and proximity to raw materials used in production

Capital investment in the project would be Malaysian Ringgit (MYR) 11,000,000. The project would last for 4 years producing annual net operating cash flows of MYR 4 million per year

At the end of the project the assets would be sold at an estimated value of MYR 2 million

In calculating the return the firm will use a GBP weighted average cost of capital (WACC) of 8%

The GBP/MYR exchange rate is 5.5000 and is expected to remain stable through the end of Year 1 but is expected to weaken to 5.75 by the end of year 2, 6.00 in year 3 and 6.25 in year 4


Calculate the expected GBP NVP of the USA project showing all workings out?


The company assesses the probability of NPV calculated in the above answer to be 40% and calculates an alternative scenario forecasting an NPV return of £800,000 with a 60% probability. What is the combined weighted expected return? is an academic writing platform that provides students and professionals with quality services to ease their assignment challenges. With a wide range of services, the platform has become one of the leading academic writing service providers in the market due to its reliability and affordability. Below, we shall discuss some of the services which provides:

See also  Are these two shapes equivalent by distortion or not, and why?

Essay Writing Service
The essay writing service provides customers with quality essays on any subject or topic they requested within a given deadline. The writers at custompaper are experts in their respective fields, and they ensure customer satisfaction by producing original content with thorough research involved backed up with strong evidence from reliable sources available online or offline. All essays come with free plagiarism reports as well as revisions if needed so that customers can trust that they are getting high-quality work for their money’s worth.

Research Paper Writing Service
This is another popular service offered by custom paper help wherein customers are assisted in conducting research papers according to their needs and requirements within specified deadlines. Writers at custom paper help have vast knowledge about various topics belonging to different disciplines such as Management, Arts & Humanities, History etc., allowing them to craft impeccable research papers every time regardless of the complexity or urgency level requested by customers. Additionally, all our research papers come along with proper citation formats which ensures customer’s safety when it comes to plagiarism issues while also helping them save time on formatting procedures thus improving overall efficiency even further!

Dissertation Writing Service
CustomPaperHelp also offers dissertation writing assistance for those who need it most – students preparing for graduation or professionals wanting to further refine their skills through higher education levels such as Master/PhD degrees etc, Our team of writers consists of experienced individuals having Master’s/PhD degrees themselves so you can rest assured that your dissertation will be handled expertly from the start till the end! Furthermore, we offer unlimited revisions until your complete satisfaction is achieved, along with regular checkups being done throughout the process just so everything goes according to course without any hiccups!

See also  If you net $14.25 per hour and work 40 hours a week, 4 weeks per month, and have monthly expenses of: rent $825.50, car payment $458.79, utilities $110, food $150, gas $105, phone $125.25, savings $225, and insurance $118.36, what do you have left to invest for your retirement?

Editing And Proofreading Services
If you already have written an essay but want professional feedback before submitting it, then CustomPaperHelp also offers editing & proofreading services which helps in identifying & rectifying errors present in assignments like grammar mistakes, spelling mistakes, punctuation problems etc., thereby ensuring top-notch quality work, before submission takes place! We understand how important accuracy & consistency are when it comes to grading systems used at universities nowadays, so taking extra care during this phase becomes absolutely essential if good grades are desired afterward!

Coursework Help
For those who find coursework difficult due to complications of being quite technical in nature; CustomPaperHelp extends its support here too, by providing quality solutions every single time – starting from understanding concepts properly up until composing flawless answers following university guidelines closely enough making sure no loopholes remain whatsoever! Whether it’s related math problem-solving algorithms or lengthy home assignments – our expert panel has got you covered from head-to-toe leaving no stone unturned during this very crucial stage since final grades depend largely upon the success rate achieved here successfully!

Assignment Help
Assignments form an integral part of getting better scores & ultimately, a degree itself (in case pursuing a masters/PhD) – something only possible if precision is made a priority right away; otherwise, chances of failure increase exponentially over a time period detrimentally affecting performance evaluation systems later down road drastically hence stressing timely importance completion prior commencement other operations associated same project altogether consistently meeting high standards expected each situation respectively! Here too, CustomPaperHelp presents comprehensive solution package exceeding expectations beyond point offering optimal values therein ensuring maximum satisfaction reached under circumstances prevailing accordingly without fail…proving once more why people trust us implicitly without second thought whatsoever!!

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Custom Paper Help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Paper Help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Custom Paper Help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.