Question Details

Answered: - ABC Limited a UK firm has been invited to tender for a contract


ABC Limited a UK firm has been invited to tender for a contract in kenya with the local currency of khs, the company thinks that the contract should cost UK pound 1850000 and is prepared to price the contractat UK pound 2000000 the current exchange rate is 1 pound=kshs 2.80. The company therefore bids for kshs 5.6m the contract would not be awarded until after 6 months. A 6 months currency option to sell kshs 5,600,000 at an exchange rate of 1 pound =kshs 2.8 ABC limited can either buy the option or enter into a forward exchange contract at a rate of 1pound =khs 2.8 . Assume that the company failed to the contract and the spot rate in 6 months time is 1pound =khs 2.5. Required advice the company on which alternative is better

 

Solution details:
STATUS
Answered
QUALITY
 Approved
ANSWER RATING

This question was answered on: Oct 07, 2020

PRICE: $15

Solution~0002198531.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Get this solution for only: $
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 07, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now