USA SuperCars Revenue Risk Analysis Report Essay

USA SuperCars Revenue Risk Analysis promulgate - Essay ExampleWhat is the banks Value-at-Risk and what is the banks expected profit?16USASuperCars sign a contract to bewray 27 cars to five different countries including the USA. It was agreed that the other four countries would compensate the revenue in their local currencies at the prevailing exchange rate after the delivery. HSBC however set uped an offer of $2,150,00 for the purchase of the contract. The objective of the report was to conduct an analysis of risks to the company and the bank and profitability. Exchange rate selective information from the cashbox of America was used for altogether the analysis. A recommendation would thus be made on whether USASuoerCars should accept the offer from HSBC.Various statistics were used in achieving this objective. The expected revenue was obtained as $ 44,218,388 and the standard loss as $ 33,022.14. The probabilities of the mean exceptional $2,200,000 and 2,225,000 are 100% and 100% respectively. This shows that on that point are high chances of exceeding the mean revenue. The banks value at risk at the 5th percentile was $ and the profit was $ .USASuperCars, which is based in US, markets custom built and high-end expensive cars. These sports cars are meant for the rich in the society. The company signed an agreement to sell 27 cars to five countries across four continents the payment was to be paid after delivery in the local currency. Since the payments were to be made at a leter date and in local buyers local currency, it meant that there would be uncertainties in the final revenue that is expected at the contract. The exchange rates were provided by the Bank of America for the twelve months that followed so as to ensure a proper analysis.HSBC offered $ 2,150,000 to USASuperCars in exchange for the all the revenue in the local currencies. The purpose of the report was to find the probabilities of getting revenue in excess or under the expected value evaluate the offer by HSBS and determine other risks that face up