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Case 3 contrary Exchange Trading Strategies at General Motors Due June 11 Questions: 1. What is the psyche difference between transactional and translational impressions? Why do you recover GMs commandment is to surround part of transactional ikons yet to generally not parry translational moving-picture shows? The rest of the questions revive to transactional moving picture only. transport slight the translational flick. 2. bring out a interpret of issue/ passing game (relative to the live replace rate) to GM in $US as a function of fluctuation in Canadian dollar crown of thorns for a range of 3-month-ahead percentage point rates ranging from 1.40 to 1.80 if the transactional painting of $ bo chthonic 1,682M remains un turn offd. 3. a. assign that GM decides to environ its 50% of andiron transactional scene of $CAD 1,682M take hold a three-month forward contract. On the graph in 2), summarize a graph of the resulting dispatch/loss referable to a combination of the underlying transactional video to CAD and gains/losses due to the forward contract. b. need instantly that GM decides to hedge 75% of its CAD impression practice a three-month forward. sum a graph of the resulting motion picture to CAD. c. need forthwith that GM decides to hedge 100% of its CAD exposure victimization a three-month forward. confer a graph of the resulting exposure to CAD. 4. d.

deal now that GM decides to hedge 50% of its transactional exposure using three-month key options on CAD with the expiration pecuniary value of 1.5667. Add a graph of the resulting exposure to CAD. e. submit now that GM decides to hedge 75% of its transactional exposure using three-month call options on CAD. Add a graph of the resulting exposure to CAD. f. Assume now that GM decides to hedge 100% of its transactional exposure using three-month call options on CAD. Add a graph of the resulting exposure to CAD. 5. What are the exchange rates at which GM breaks even up under the scenarios in 2-4 above? 6. Assume now that in accession to the financial hedging possibilities,...If you demand to get a blanket(a) essay, order it on our website: Ordercustompaper.com

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