Suppose a bank customer with CL000,000 wishes to trade out of euro and into Japanese yen. The dolar-euro exchange rate is quoted as $1.60-CL.00 and the dollar yen exchange rate is quoted at $1.00-W120. How many yen will the customer get?(Answer with just the nunumber. No symbote.)

In this Question customer First customer needs to convert the Euros into Dollars and then needs to…

Suppose a bark customer with CIO00,000 wahes to trade out of euro and into lapanese ven. The dolareuro exchange rate is quoted es $1.60- CL.00 and the dollar yen exchange rate is quoted at $1.00-W120, How many yen will the customer get?

Suppose a bark customer with CIO00,000 wahes to trade out of euro and into lapanese ven. The dolareuro exchange rate is quoted es $1.60- CL.00 and the dollar yen exchange rate is quoted at $1.00-W120, How many yen will the customer get?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 1IEE

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Concept explainers

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.

Question

Suppose a bank customer with CL000,000 wishes to trade out of euro and into Japanese yen. The dolar-euro exchange rate is quoted as $1.60-
CL.00 and the dollar yen exchange rate is quoted at $1.00-W120. How many yen will the customer get?
(Answer with just the nu
number. No symbote.)

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