Suppose that Lendlease, an Australian construction company, wants to enter a tender process to build a new airport in Indonesia. The company must submit its bidding application by the end of August, but won't know the outcome by 1 Dec, 2022. Lendlease worries that the A$ cost of construction would be inflated if our currency is weakening (against the US dollar and Indonesian Rupiah) over the next 3 months Therefore, it would like to use either a forward contract or an option contract to protect it from foreign exchange exposure. Also assume the Lendlease would use debt financing, via a loan from Australian banks or domestic bond sales, for this project if it wins the bid.

Which derivative contract would you recommend to Lendlease? In your discussion, you may want to consider a scenario in which banks don't offer a derivative contract between A$ and Rupiah.

Expert Answer

Answers

Answer 1

I would recommend using a forward contract to protect Lendlease (Australian construction company) from foreign exchange exposure.

A forward contract is a derivative contract that allows Lendlease to lock in a specific exchange rate for future currency conversion. By entering into a forward contract, Lendlease can mitigate the risk of currency fluctuations and protect itself from potential losses due to a weakening Australian dollar against the US dollar and Indonesian Rupiah. The forward contract would provide certainty in terms of the exchange rate that will be used for converting the currencies at a later date, which is beneficial for budgeting and cost estimation purposes.

Here, where banks may not offer a derivative contract between the Australian dollar and the Indonesian Rupiah, a forward contract can still be utilized by finding a counterparty or financial institution willing to enter into the contract. This could involve seeking out specialized currency exchange providers or negotiating with international banks that operate in both currencies. By utilizing a forward contract, Lendlease can hedge its foreign exchange risk effectively and have more confidence in managing the costs of the construction project.

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Related Questions

Dentify the sentence type: places like taco bell provide affordable and convenient food for americans, but consumers need to be aware of the health consequences of eating too much fast food. simple compound complex compound-complex

Answers

Answer:

The correct answer is the option: Compound.

Explanation:

To begin with, the sentences that are compound are understood to be the ones who have at least two or more independent clauses that are joined together by a comma, semicolon or by a conjunction. Therefore that the sentence presented in the text corresponds to a compound sentence due to the fact that you can find two different clauses that are joined together by a comma and a coordinator in this case ("but") and when that happens that coordinator adds also flowness to the sentence.

Professor Patty is very distraught that three students in her class cannot afford to buy the 42- chapter book for the course. The book is used for two semesters, although not all students take the second semester. She finally tells the three students that she will make copies of the first 21 chapters for them, at no charge. Professor Patty makes the copies and gives each chapter to the students prior to her coverage of the relevant chapter in class. If Professor Patty is sued for copyright infringement: __________

a. she wins because the fair use doctrine permits the use of the work for educational purposes.
b. she wins because she is not copying the entire book but only 21 chapters of it and is not making a profit.
c. she loses because by making and distributing the chapters, she is diminishing the value of the book on the national market.
d. she loses because she is copying whole sections and a significant portion of the book.

Answers

Answer: C

Explanation:

A payday loan company will lend you $878 right now. In two weeks they will charge $33 and you will have to pay your paycheck of $1,042. What is the APR of this loan? Answer in percentage without the symbol Answer: 0×(583)

Answers

The APR (Annual Percentage Rate) of this loan is approximately 164.88%. It's worth noting that payday loans often have high APRs, making them a costly form of borrowing.

To calculate the APR of the loan, we need to consider the total cost of the loan over a year and express it as a percentage of the loan amount. In this case, the loan amount is $878, and the total cost of the loan is the sum of the fee charged after two weeks ($33) and the repayment amount ($1,042) when the paycheck is due.

First, we need to determine the interest paid over the loan period, which is the difference between the repayment amount and the loan amount:

Interest = Repayment amount - Loan amount = $1,042 - $878 = $164

Next, we calculate the APR by dividing the interest paid over a year by the loan amount and multiplying by 100:

APR = (Interest / Loan amount) * 100 = ($164 / $878) * 100 ≈ 18.67%

Since the loan term is two weeks, we need to annualize the interest rate by multiplying it by the number of periods in a year (52 weeks):

APR = 18.67% * (52 / 2) ≈ 164.88%

Therefore, the APR of this payday loan is approximately 164.88%.  It's advisable to consider alternative borrowing options and carefully evaluate the terms and fees before taking out a payday loan.

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When governments allow one highly regulated business to control an
essential service, such as water treatment, they create:
A. a public oligopoly.
B. a natural monopoly.
C. restricted competition.
D. monopolistic competition.

Answers

The type of Monopoly that occurred when a regulated business is been given control on essential service is B: natural monopoly.

A natural monopoly can be regarded as a kind of monopoly that occurr, as a result of a single firm serving market at lower cost that is even lower than that of combination of two or more firms.

It do occur when government give that control to a firm on essential service such as water treatment.

Therefore, option B is correct.

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Answer:

B. a natural monopoly.

Explanation:

failure to maintain financial responsibility texas

Answers

FMFR tickets, which necessitate insurance or financial responsibility, are serious. A second FMFR conviction will terminate your driving privileges.

In addition, if you cause an accident and are found to be at blame, you must pay all related expenses out of pocket if you do not carry liability insurance. Failure to maintain financial responsibility is the inability to maintain responsible financial behavior.

Therefore, it is crucial to always have auto insurance. If you were given a ticket for failing to show proof of insurance or financial responsibility but you really had insurance at the time of the ticket, you can get the ticket dropped by showing proof of insurance to the court within the 15-day grace period. A court appearance was necessary for every other type of dismissal.

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Which of the following are used by economists to define and measure economic growth? (Select allthat apply.)an increase in real GDP occurring over some time periodan increase in nominal GDP occurring over some time periodan increase in nominal GDP per capita occurring over some time periodan increase in real GDP per capita occurring over some time period

Answers

Economists use the following factors to define and measure economic growth:An increase in real GDP occurring over some time period.An increase in nominal GDP per capita occurring over some time period.

An increase in real GDP per capita occurring over some time period.An increase in nominal GDP occurring over some time period.The Gross Domestic Product (GDP) is the sum of all goods and services produced by a country over a specific period, usually annually. Economic growth is measured using this GDP, and there are two different ways to measure GDP; the nominal and the real GDP.Nominal GDP is the sum of all goods and services produced by a country, valued at their current market prices. Real GDP, on the other hand, is calculated by adjusting the nominal GDP for inflation. Real GDP provides a more accurate representation of a country's economic growth since it factors in the effect of inflation that affects nominal GDP.The per capita GDP is the GDP divided by the country's population. It is an essential factor in measuring economic growth since it measures the economic growth of each individual in the country. Inflation affects both the nominal and real per capita GDP, making it essential to factor it in the measurement of economic growth.

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A goal is defined as the result or success toward which effort is directed.
O True
O False

Answers

Answer:

true

Explanation:

the answer is true
explanation:just trust

Sara does not like to wait for long before being served at a restaurant. Hence, the dimension of service that will influence Sara when she rates the quality of service at a restaurant will be: Multiple Choice reliability. tangibility. responsiveness. empathy. durability.

Answers

Answer:

Responsiveness

Explanation:

Based on the information what will influence her when she rates the quality of service at the restaurant will be RESPONSIVENESS reason been that RESPONSIVENESS is the ability of a person or an individual to respond faster ,speedly or quickly without wasting time to a situation on ground or by quickly rendering customer service to a customer need, which is why quick RESPONSIVENESS is a very vital tool for any business because it shows how fast a business, company or organization rendered service to their customers without wasting their customers time which will inturn help to influence how a customer will rates the quality of service been rendered to them just as the case of Sarah.

Example a business or company that does not have quick RESPONSIVENESS may loose their customers because not all customers like to wait for a long time before they are been attended to.

Shortages: Multiple choice question. generally occur after surpluses. are usually the product of price controls. typically cause prices to fall. are usually indicated by high prices.

Answers

Shortages are usually the product of price controls.

What is a shortage?

A shortage is when the quantity demanded exceeds the quantity supplied. This is because price is below equilibrium price. When there is a shortage, prices would rise until equilibrium price is reached.

Price control is when the government sets the maximum price of a good. It  is usually set below equilibrium price. This leads to shortages.

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y
What are the two costs used to compare credit offers?
I
Question 2 (5 points)
What is the difference between simple and compound interest?

Answers

Answer:

#2Simple interest is interest paid only on the original investment whereas compound interest paid both on the original investment and on all interest that has been added to the original investment. Since compound interest is calculated based on a larger amount than simple interest, it results in a larger amount of money over time.

It is sometimes necessary for a _________________ economy to live with a degree of uncertainty over _______________ that would be politically unacceptable in the high-income economies. developing; unemployment converging; inflation disconnected; fundamentals of growth converging; trade imbalances

Answers

Answer:

converging; inflation

It is sometimes necessary for a converging economy to live with a degree of uncertainty over inflation that would be politically unacceptable in the high-income economies.

following data:
Fixed overheads: £40,000
Selling price: £6
Variable cost per unit: £4
If the selling price is increased by 50% then the break-even level would
now be: *
(1 Point)
8,000 units
20.000 units
O 10,000 units
0 12500 units​

Answers

Answer:

If the selling price is increased by 50% then the break-even level would now be 8,000 units.

Explanation:

The following are given in the question:

Fixed overheads = £40,000

Initial selling price = $6

Variable cost per unit = £4

Percentage increase in selling price = 50%

Therefore, we have:

New selling price = Initial selling price * (100% + Percentage increase in selling price) = £6 * (100% + 50%) = £9

New contribution margin per unit = New selling price - Variable cost per unit = £9 - £4 = £5

New break-even level = Fixed overheads / New contribution margin per unit = £40,000 / £5 = 8,000 units

Therefore, if the selling price is increased by 50% then the break-even level would now be 8,000 units.

Fill in the blank. it would be possible to determine the ppp exchange rate that would exist if markets were efficient by comparing ___. multiple choice question.

Answers

The correct answer is option B) To determine the PPP exchange rate that would exist if markets were efficient in comparing the prices of traded goods and services.

The exchange rate between two currencies that offers each one the same purchasing power in various nations is known as the Purchasing Power Parity (PPP) exchange rate.

A unit of one currency should be able to purchase the same quantity of products and services in many nations in an efficient market, according to this theory.

This implies that the ratio of the prices of a basket of goods and services in each country should be the same as the exchange rate between two currencies.

We can determine the PPP exchange rate that should exist if markets are efficient by comparing the costs of similar goods and services in two different countries.

Complete Question:

Which of the following would be possible to determine the PPP exchange rate that would exist if markets were efficient?

A) Comparing the current exchange rate

B) Comparing the prices of traded goods and services

C) Comparing the inflation rates of two countries

D) Comparing the economic growth rates of two countries

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• Lack of financial security
• Difficulty in securing variety of financial services
• Increased financial costs
Who is being described?
A)
travelers
B)
immigrants
o
unbanked people
D
undocumented workers

Answers

Answer:

Unbanked people

Explanation:

a stock has a beta of 1.34 and an expected return of 13.2 percent. a risk-free asset currently earns 4.5 percent. a. what is the expected return on a portfolio that is equally invested in the two assets? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if a portfolio of the two assets has a beta of .94, what are the portfolio weights? (do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) c. if a portfolio of the two assets has an expected return of 12.4 percent, what is its beta? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. if a portfolio of the two assets has a beta of 2.54, what are the portfolio weights? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

Answers

The expected return on the portfolio is calculated as a weighted average of the expected returns on the two assets, where the weights are equal since the portfolio is equally invested in the two assets:

Expected return = (0.5 × 13.2%) + (0.5 × 4.5%) = 8.85%

b. The beta of the portfolio is a weighted average of the betas of the two assets, where the weights are the portfolio weights of the assets:

0.94 = (w1 × 1.34) + [(1 − w1) × 0]

0.94 = 1.34w1

w1 = 0.7015 or 70.15%

w2 = 1 − w1 = 0.2985 or 29.85%

c. Using the formula for the expected return of a portfolio in terms of its weights and the expected returns and betas of its component assets, we can solve for the portfolio's beta:

12.4% = (w1 × 13.2%) + [(1 − w1) × 4.5%]

0.124 = (0.132w1) + (0.045 − 0.045w1)

0.079 = 0.087w1

w1 = 0.9080 or 90.80%

w2 = 1 − w1 = 0.0920 or 9.20%

Beta = (0.9080 × 1.34) + (0.0920 × 0) = 1.2147 or 1.21

d. Using the formula for the beta of a portfolio in terms of its weights and the betas of its component assets, we can solve for the portfolio weights:

2.54 = (w1 × 1.34) + [(1 − w1) × 0]

2.54 = 1.34w1

w1 = 1.8955 or 189.55%

w2 = 1 − w1 = −0.8955 or -89.55%

The negative weight for asset 2 indicates that the portfolio has a short position in the risk-free asset, which means it has borrowed money to invest in the risky asset. This is not a feasible or desirable portfolio, so we can conclude that there is no solution to this part of the problem.

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Omar and Patrick sell magazine subscriptions by telephone. Omar is paid $1.00 for every 5 calls he makes, while Patrick is paid $1.00 for every subscription he sells. Omar is paid on a __________ schedule while Patrick is paid on a __________ schedule.

Answers

This means that Omar is paid on a fixed ratio schedule while Patrick is paid on a variable ratio schedule.

What are fixed ratio and variable ratio?

Fixed Ratio refers to a reinforcement schedule, which make use of reinforcement after the completion of number of responses. This means that each time a response is received, there is reward for each of the completed task.

For Variable ratio, there are unpredictable responses even when the responses have been reinforced. Each time a person performs a behaviour, the reinforcement is not distributed.

Hence, Omar is paid on a fixed ratio schedule while Patrick is paid on a variable ratio schedule.

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A business analyzes what competitors are charging for products.

Answers

When a business analyzes what the competitors are charging for their products, it is known as the process of marketing info management.

What is the significance of business competitors?

A business competitor can be referred to or considered as an organization that deals in the same product that is offered for sale by other enterprises in the same market.

It is important for a business to keep an eye on the acts of its competitors, as it helps them in keeping themselves updated with marketing info management.

Therefore, the significance regarding the business competitors has been aforementioned.

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What is the probability that a subscriber did not rent a car during the past 12 months for either business or personal reasons?

Answers

30.2% is the probability that a subscriber did not rent a car during the past 12 months for either business or personal reasons .

How does probability explain work?

The simple definition of probability is the likelihood that something will occur. We can discuss the probabilities of various outcomes—how likely they are when we aren't sure how a particular event will turn out. Statistics describes the examination of events subject to probability.

Which four forms of probability are there?

There are four primary categories of probability classical, empirical, subjective, and axiomatic.

                              Probability is the area of mathematics that deals with the occurrence of a random event. Probability = Number of favorable outcomes / Total number of outcomes is how the general probability formula is written. P(A) = f / N.

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adam smith opposed government taxation and spending. true or false?

Answers

False. Adam Smith, an 18th-century philosopher and economist, did not oppose all government taxation and spending.

Economists are professionals who study how societies allocate resources to meet their needs and wants. They analyze economic data, create economic models, and make predictions about future economic trends. Their work is critical in informing policymakers, businesses, and individuals on how to make sound economic decisions.

Economists can specialize in various fields such as macroeconomics, microeconomics, international economics, public policy, and financial economics. They work in a variety of settings including government agencies, universities, research institutions, and private businesses.

Economists have a significant impact on our daily lives as their research informs decisions related to market taxation, healthcare, education, infrastructure, and many other areas. They play a vital role in shaping public policy, promoting economic growth, and creating a more prosperous society.

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Whom do price supports benefit and whom do
they hurt?

Answers

they benefit producers and hurt consumers

What technology allows retailers to better respond to consumer buying patterns?

Answers

Cypherxam is the anwser

A willing buyer who seeks a seller exclusively on Craigslist in search of a four-drawer file cabinet for $25 is the offeree, because he is the buyer. False False True True

Answers

The given statement about a willing buyer who makes an offer being the offeree, because he is the buyer is TRUE.

What is a Contract?

This refers to the formal agreement that exists between two or more parties about a particular thing, usually backed by law.

Hence, we can see that based on the fact that the willing buyer has searched for a seller on Craigslist and wants to buy a cabinet for $25, then he is the offeree because he is the buyer based on his willingness to buy.

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Matt Brawn bought a diamond engagement ring for $2700. Hs down payment was $900, and he made 12 monthly payments of $155.31. Find the APR. Refer to the APR table, Annual Percentage Rate, as needed.

Answers

For $2700, Matt Brawn purchased a diamond engagement ring. He put down $900 and paid $155.31 each month for 12 months. Around  9.39% is the APR.

Using the following formula, we can determine the APR:

PV is equal to Pmt times ((1 - (1 + r/12)-n) / (r/12)). + DP

where r is the APR (what we're looking to determine), n is the number of payments (12), PV is the present value (in this example, $2700), PMT is the monthly payment ($155.31), and DP is the down payment ($900).

An APR of roughly 9.39% is obtained by utilising a financial calculator or spreadsheet tool to solve for r.

Note: If the APR table is available, we may also estimate the APR using the principal borrowed, the number of payments, and the payment amount. The aforementioned formula, however, offers a more accurate calculation.

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In
, people invest money in a company in exchange for the company’s
.


Answers

Answer:

In equity crowdfunding, people invest money in a company in exchange for the company’s shares

Explanation:

Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.

Startups and early-stage companies use this method to raise capital.

What are the causes of corruption and fraud in the public sector​

Answers

Answer: All before-mentioned forms of corruption occur in the public sector, including bribery, embezzlement, illicit enrichment, trading in influence, and abuse of functions (which can involve favouritism and nepotism).

Explanation:

Answer:

•Country size.

•Country age.

•Resource curse.

•Political instability.

•Wages.

•Lack of rule of law.

•Failure of governance.

•Size of government.

What is one method that helps control online fraud? O A. Deleting odd emails before reading B. Reporting odd emails to police • C. Reporting odd emails as spam • D. Signing into email in many locations

Answers

Answer:  C. Reporting odd emails as spam

Explanation:

1. Give short introduction of the professions in public service sector.​

Answers

10108282828282828282

describe the difference between a landing strip and a runaway

Answers

Answer:

a runway is where the plane takes off and a landing strip is where the plane lands

Explanation:

Which knowledge area has been identified by architects, carpenters, and building inspectors as important in their work?

mathematics
building and construction
design
customer and personal service

Answers

Answer:

Building and Construction

Explanation:

Edg

Give examples of how value is added to warburtons products

Answers

Answer:

they are rare and hard to come by

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What is the 20th term of the arithmetic sequence3, 9, 15, 21, 27, ...? Male 16 15 2 33Female 14 11 18 43Total 30 26 20 76If one student is chosen at random,Find the probability that the student was female: Find the probability that the student was female AND got a "C": Find the probability that the student was female OR got a "C": If one student is chosen at random, find the probability that the student was female GIVEN they got a 'C': I WILL GIVE BRAINLIEST Eddie bought a vegetarian pizza that was served on a metal circular tray. On the back of the tray, small letters stated that it has a circumference of 56.52 inches. What is the tray's diameter? Record three key points that describe Hindu beliefs about Karma: I have no idea where to even start. He gave us a 4 minute long video explaining absolutely nothing. What concept is this ABC Hospital has just received a large shipment of vaccines. It takes less than five minutes per patient to the paperwork and receive the shot. 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