1. What are Diva’s projected profits for the fiscal year ending September 1995?

2. What factors affect a firm’s exposure to exchange rate risk? How much exposure to exchange rate risk does Diva Shoes have in April 1995?

3. Suppose that Diva chooses to hedge its exposure in yen using the forward contract described in case Appendix A or the currency option described in case Appendix B. Assume that you lock in these contracts at the forward price implied by interest-rate parity for September 1995. Draw the payoffs to the position at maturity for each alternative with the exchange rate defined in USD/JPY × 10,000 units (i.e., the same units as the currency option is quoted). What do you see as the tradeoffs between the alternatives?

4. Do you think Bisno should remain strictly a shoe salesman or do you favor hedging his exposure? If you favor hedging, which alternative would you recommend to him?

 

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1. What are some typical inputs and outputs of the accounting cycles?
2. Why is it important for a company to have an internal control system?
What is the difference between a general control and an application control?

 

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1. What are the main factors causing economic growth?

2. What types of policy can be used to promote economic growth?

3. Why does the index of sustainable economic welfare (ISEW) differ from gross national product (GNP)?

 

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1. What are the main functions of money in an economy?

2. Name one narrow measure of money.

3. What do broad measures of money include?

 

 

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Part 1 International Monetary System [15 marks]
In this part of the assignment, you will be investigating the Blockchain Technology and
cryptocurrency market.
1) What are the opportunities and challenges in regards to applying Blockchain technology to
the financial industry? (2 marks)
2) Using daily close data, please plot the following two exchange rates in the same chart:
i) exchange rate between VEF (Venezuelan Bolivar) and USD from 1 July 2013 and 1
July 2018; and
ii) exchange rate between Bitcoin (BTC) and USD from 1 July 2013 and 1 July 2018;
Indicate one specific point on each of these two lines where the trend changes, and provide
some reason(s) why this is the case.
(Hint: Please clearly mark the legend and the relevant information on the axes, and
provide data sources. You can use the left axis for the VEF/USD exchange rate, while
using the right axis for the BTC/USD exchange rate. Please note that you should create a
chart on your own rather than copying from other sources.). (4 marks) Document Preview:

FINM 7406 Individual Assignment Due date: 11am on 11 October 2018 (Thursday) Weight: this assignment is out of 20 marks and is worth 20% of your final grade YOUR INSTRUCTIONS • There are two parts to this assignment. a) For Part 1: You will need to upload your assignment via the link on Blackboard. The file must be in PDF. You can submit your assignment multiple times until the due date. However, only the last submission will be marked. You would also need to submit this file through TurnItIn for plagiarism analysis (see more information below). b) For Part 2: you need to submit your designed Excel Spreadsheet via the link on Blackboard. • Please make sure you have your full name and student number on every page of your assignment (i.e., insert a Header). • Your Word document should be typed in Times New Roman font, size 12. The assignment should be double spaced and have margins of 2.54 cm. • Teaching staff will not answer any questions regarding the assignment as this gives students an unfair advantage over others. However, you may post any questions to the assignment discussion board on BlackBoard and they will be answered there. • Note that your assignment will be analysed for plagiarism using TurnItIn. Once you are satisfied with the TurnItIn similarity report for your PDF file, that copy becomes your final copy. See for instructions https://www.library.uq.edu.au/library-services/turnitin-assignments (link on BB with assignment) • Late submissions will lose marks as per the ECP. • Please ensure you reference appropriately and correctly. • Please start each question on a separate page. • In terms of word count, please use a maximum of 150 words per mark as a guide. For example, 2 marks = 300 words max)Part 1 International Monetary System [15 marks] In this part of the assignment, you will be investigating the Blockchain Technology and cryptocurrency market. 1) What are the opportunities…

Attachments:

FINM7406-Sem2….pdf

 

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