Questions 23-36 are based on the following information: Transaction Exposure Problem: (34 points in total) Suppose that you (i.e., company XYZ) are a US-based importer of goods from Canada. You expect the value of the Canada dollar to increase against the US dollar over the next 6 months. You will be making payment on a shipment of imported goods (CAD100,000) in 6 months and want to hedge your currency exposure. The US risk-free rate is 5% and the Canada risk-free rate is 4% per year. The current spot rate is $1.25/CAD, and the 6-month forward rate is $1.3/CAD. You can also buy a 6-month option on Canadian dollars at the strike price of $1.4 /CAD for a premium of $0.10/CAD.  In six months, if the spot exchange rate turns to be $1.4/CAD. XYZ will be _______ using forward hedge compared with unhedged position.       

Walmart financial statement shows that Walmart only hedges Japanese Yen and British Pound (instead of over 100 foreign currencies). Which of the following best describes Walmart’s hedging strategy? 

 When the domestic currency is strong or expected to become strong 

 A minor currency is 

 An international trader faced with exposure to a depreciating foreign currency can reduce transaction exposure with a strategy of 

 A U.S.-based MNC with exposure to the Swedish krona could best cross-hedge with

Given the following information, calculate the acquisition price of the property:First-year NOI: $57,750Capitalization rate 8.5%Equity Investment: 30%

Given the following information, calculate the going-in capitalization rate for the specific property:First-year NOI: $18,750Acquisition price: $150,000Equity Investment: 20%

Which substance in a reaction will not change in concentration as the reaction proceeds?

Given the following information, calculate the going-in capitalization rate for the specific property:First-year NOI: $18,750Acquisition price: $150,000Equity Investment: 20%