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(Solved): Based on the characteristics of each of the individual money and capital market instruments covered ...



Based on the characteristics of each of the individual money and capital market instruments covered in this class, which specific financial instrument do you think would be the best to use in each of the following situations? Briefly explain your logic in each case. (3 points each) a. Buckman's Ski and Snowboard Shop is gearing up for the winter season and needs some short-term working capital to cover the purchase of new equipment and gear until sales and rental revenue starts rolling in within a couple of months. b. Tricon Bank has substantial Treasury bill holdings on a day that they experience unexpected withdrawals. They are left with insufficient reserves but expect the deficiency to resolve in a day or two. c. Headquartered in Japan, Sony is a major exporter of electronics to European countries and the United States. They are concerned that fluctuations in the yen versus the euro and the dollar will negatively affect their revenue. d. Total Wine & More imports wine and spirits from around the world for its stores all across the US. Because poor handling and temperature control during shipping can damage an(d)/(o)r destroy product shipments, the shop prefers to postpone payment to its various vendors until satisfactory delivery. e. OpenSky Energy needs to raise $200 million to invest in additional solar and wind energy equipment sales in the clean energy sector are projected to grow substantially for the next few decades. f. PennDOT needs to raise $750 million for improvements and repairs to its toll highway system.



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