Chinese factory

I’m trying to write my paper and I’m stuck. Can you help?

Our reliable essay writing service is a great opportunity for you to save your time and receive the best paper ever.

You work for a US company that imports products from a Chinese factory.The US company received an invoice from the Chinese factory requesting a payment in the amount of CNY 100,000,000 due 90 days from today CNYUSD Spot Rat is  Today’s Spot Rate: Dec. 11, 2018 ActualSpot Rate = USDCNY 6.90566Inverse Spot Rate = CNYUSD 0.1448I CNY = 0.144813 USDCAD 100,000,000 = USD 14,480,000The 90-day Forward Rate is3 Month Forward RateMAR. 11, 2019 ForecastRemember, USD is not the base1 CNY = USD 0.144813Inverse Forecasted Spot Rate = CNYUSD 0.1445CNY 100,000,000 = USD 14,450,000 The implied Chinese 3 month interest rate is Spot Rate x ((1+ implied Chinese interest rate) / (1+ US interest rate)) = Forward RateSpot Rate x (1 + x) / (1+ 0.0235) = Forward Rate                                                                     0.1448 x (1 + x) / (1 + 0.0235) = 0.14450.1448 + 0.1448 x / 1.0235 = 0.14450.1448 + 0.1448 x = 0.1445 * 1.02350.1448 x = 0.1478 – 0.1448X = 0.00309 / 0.1448X = 0.0213397 or 2.13%·     Actual 3-month US Treasury Bill rate = 2.35%·     Implied 3-month Chinese interest rate = 4) To execute a Money Market Hedge, the Present Value of the CNY 100,000,000 payable is  PV of the foreign currency payable is Chinese Treasury Bill 3 Month December 11, 2018: 2.13%In 90 days, CNY 100,000,000 is due and payable·     What is the PV of CNY 100,000,000, at 2.13% rate?·     FV / (1 + Rate) = PV·     100,000,000 / 1.0213 = CNY 97,914,422CNY 97,914,422 today equals this value of USD todayUse Inverse Spot Rate = CNYUSD 0.1448·     CNY 97,914,422 x 0.1448 = USD 14,178,008·     Withdraw USD 14,178,008 from US bank account·     Convert to CNY 97,914,422·     Deposit CNY 97,914,422 into Chinese bank, investing in a 3-month Chinese Treasury Bill paying 2.13%·     Over the next 90 days the CNY 97,914,422 deposit will grow 2.13% to CAD 100,000,000o  97,914,422 x 1.0213 = 99,999,999.2·     Withdraw CNY 99,999,999.2 from the Chinese bank on Mar. 11, 2019·     Pay the Chinese factory the CNY 99,999,999.2 on Mar. 11, 2019 The USD value today of the CNY value is1 USD = 6.90566 CNY1 CNY = 0.144813 USD·     CNY 97,914,422 x 0.1448 = USD 14,178,008Question:-

Plagiarism-free and delivered on time!

We are passionate about delivering quality essays.

Our writers know how to write on any topic and subject area while meeting all of your specific requirements.

Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.

ORDER PROCESS

How it Works

c

Place an order

Fill out the order form.

Attach any custom instructions that is required to complete your order.

Make Payment

Pay online safely.

The order form will redirect you to a payment page.

Receive Order via Email

Once the order is complete, we’ll send it via the email provided on the order form.

All Papers are Written from Scratch