Hopkins Corporation has a subsidiary located in Singapore. Next year, the Singapore subsidiary is expected to generate income of S$2,000,000. Hopkins decides to hedge its translation exposure using a forward contract. The 360-day forward rate for the Singapore dollar is $0.56. If the Singapore dollar by $0.03, Hopkins will have realized a of $.

Hopkins Corporation has a subsidiary located in Singapore. Next year, the Singapore subsidiary is expected to generate income of S$2,000,000. Hopkins decides to hedge its translation exposure using a forward contract. The 360-day forward rate for the Singapore dollar is $0.56. If the Singapore dollar depreciates by $0.03, Hopkins will have realized a gain of $60000.

Explanation:

Since the exposure has been hedged through forward contract, any appreciation is a loss and any depreciation is a gain

Amount = 2,000,000*0.03 = 60,000

i know right it’s not fair some people are just so rude unlike you your actually trying to get to know people and i think that is very kind

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.