You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$. Information for Forward Contract: Forward exchange rate (one yr): 1.54 $/BP Information for Money Market Instruments (MMI): Current exchange rate: 1.50 $/BP Investment return at Aerion Fund Management (in UK): 4% annual Interest rate of borrowing from Bank of America (in USA): 2% annual Information you need for Currency Options Contract: Options premium: 0.015 $/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54 $/BP Let’s suppose you signed the Currency Options Contract. The actual exchange rate at the time of the payment is 1.50 $/BP. What would you do? Exercise the option and take 1.54 $/BP. Do not exercise the option and take the actual exchange rate of 1.50 $/BP. Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at â‚¬ 300 payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company’s fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 â‚¬/$. Dec 31, 2018: 2.0 â‚¬/$. Feb 1, 2019: 1.0 â‚¬/$. What was net income for 2018 and 2019, respectively? 0-$150, $250 $100,-$200 O $250, -150 $150, $250 RE: Are the Chinese illegally subsidizing auto exports? During the presidential election campaign in 2012, the Obama administration filed a complaint against China with the WTO for China providing export subsidies to its auto and auto parts industries. However, the response from U.S. auto companies and auto parts producers was muted. Why not? They were afraid of retaliation from China They were also receiving subsidies from US government They were not 100% sure if US could win the case against China.