Problem 9-3 (LG 9-4) On March 13, 2020, you convert 540,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month forward contract to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? Use the data in Table 9-1 for this problem. (Round your answer to 2 decimal places. (e.g., 32.16)) Amount that you will receive in U.S. dollars at the end of six months
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- Suppose your company imports computer motherboards from Singapore. The exchange rate is $1.4878 per Singapore dollar. You have just placed an order for 41107 motherboards at a cost to you of S147 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $118 each. What is the break-even exchange rate? NOTE: Enter the PERCENTAGE number rounding to two decimals.IF 2c Your Canadian company processes raw sugar for sale in the United States, and thefirm has just received a container of raw material from the UK. You have an invoicethat asks you to pay £20,000 in 30 days. The current exchange rate is $1.75/£. c. If you could lock into a forward rate today of $1.85/£ for delivery in 30 days, whatshould you do?Current exchange rate (Feb 15, 2018) is .0090 $/Yen. You speculate the exchange rate will be .0087 $/Yen on Mar 15, 2018. You plan to make money in the currency exchange market through the 'Short-selling' method. In this case, the first step is you borrow ________. Group of answer choices Yen US$
- 38.26 PM.jpeg OWORDS POWERED BY TINY QUESTION 3 On 1 July 2020 Zara Ltd enters an arrangement with a US bank-American Express Bank-to borrow US$900,000. The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 8% percent per year. The exchange rate information is given below: AS us 1 July 2020 0.45 30 June 2021 0.55 Required: What journal entries are required in Zara Ltd books for 1 July 2020 and 30 June 2021 in accordance with AASB 121 (rounded to the nearest whole AS)- For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). A %G 白 Q BIUS Paragraph Open Sans,sa. v 10pt Save and5 Save All Answers Click Save and Submit to save and submit. Click Sove All Answers to save all answers. hp R. DLet’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold all of them 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 $/€. Dec 31, 2018: 1.5 $/€ Feb 1, 2019: 1.0 $/€ What was net income for 2018 and 2019, respectively? Group of answer choices A) -$50, $150 B) $250, -100 C)$200, $100 D)$250, $100Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.17. If the krone appreciated 7% tomorrow against the dollar, how many krones would a dollar buy tomorrow? Do not round intermediate calculations. Round your answer to four decimal places. ____ krones
- Suppose that you are the treasurer of IBM with an extra U.S. $1,000,000 to invest for six months. You are considering the purchase of U.S. T-bills that yield 1.810% (that’s a six month rate, not an annual rate by the way) and have a maturity of 26 weeks. The spot exchange rate is $1.00 = ¥100, and the six month forward rate is $1.00 = ¥110. The interest rate in Japan (on an investment of comparable risk) is 13 percent. What is your strategy?You are leaving Mexico and have 290 pesos to change into dollars. The exchange rate is now 12 pesos to the dollar. Approximately how many dollars will you receive? A. $24.17 B. $3025.00 C. $264.00 D. $3,480.00You travel to Cancun Mexico for spring break. The current exchange rate is 14 pesos to the dollar. When you arrive, you convert $3,100 into how many pesos? Multiple Choice 43,400 221 43,350 43,380
- IF 2a Your Canadian company processes raw sugar for sale in the United States, and thefirm has just received a container of raw material from the UK. You have an invoicethat asks you to pay £20,000 in 30 days. The current exchange rate is $1.75/£. a. What would it cost you, in Canadian dollars, to pay the bill today?You observe the following quoted money market rates: Spot exchange rate 95-day Forward exchange rate 95-day USD interest rate 95-day AUD interest rate What will your profit (in USD) be 95 days from now if you borrow USD3 million today and invest in Australia and then convert back to USD? In your calculations assume 360 days per year. a. -USD 361,605.85 b. -USD 352,934.10 -USD 272,802.68 Bid Ask AUD1.185/USD AUD1.189/USD AUD1.341/USD AUD1.349/USD 5.57% p.a. 6.38% p.a. 7.71% p.a. 8.81% p.a. O c. O d. -USD322,300.31 O e. None of the options in this question.Problem 7. Assume that you are a US investor who has available $100,000,000 to invest for six months, and that the six-month interest rate is 5% in the US. In addition you know that the six-month interest rate in Italy is 4%. You also observe the following quotations: spot exchange rate USD 0.99 per 1 EUR and a six-month forward rate USD 1.01 per 1 EUR. Where should you invest to maximize the return of your investment? Explain the role of the appreciation/depreciation of the dollar in your answer. Is this forward rate an equilibrium rate? Let's consider that you are the manager of a multinational corporation that is not willing to be exposed to currency risk: what forward rate would be the equilibrium rate that covers against currency risk, given the same spot and interest rates?