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- 50-An US Company exported its goods to Oman at US$ 2,000,000 at an exchange rate of US$ 2.5/OMR. Due to changes in the economic conditions , the OMR suddenly depreciates and the exchange rate shifts to US$ 2/0OMR. How much is the gain/loss for the importer due to exchange rate movements? O a. OMR 200,000 gain for the importer O b. None of the options O c. OMR 200,000 loss for the importer O d. OMR 80,000 gain for the the importerОрen High Low Prior settlement Last trade Change Volume Swiss Franc, USD per CHF, 125,000 CHF June 2015 1.0781 1.0935 1.0770 1.0782 1.0924 +0.0142 18,325 Sept. 2015 1.0899 1.0975 1.0899 1.0824 1.0965 +0.0141 17 The table above presents information available on a given date that is 1.20 months before the expiration for the June contract. Estimate the Swiss Franc spot price in USD per CHF on that given date. $1.0914 $1.0835 $1.0765 $1.0728Effect of 9/11 on Forward Rate Forecasts The September 11, 2001, terrorist attack on the United States was quickly followed by lower interest rates in the United States. How would this affect a fundamental forecast of foreign currencies? How would this affect the forward rate forecast of foreign currencies?
- On September 1, 2014, Bylin Company purchased merchandise from Himeji Company of Japan for 20,000,000 yen payable on October 1, 2014. The spot rate for yen was $0.0079 on September 1, and the spot rate was $0.0077 on October 1. The purchase was paid on October 1, 2014. Part 1: Did the U.S. dollar strengthen or weaken from September to October and what are the implications for Bylin's business? Part 2: What journal entry did Bylin record on September 1, 2014? Part 3: What journal entry did Bylin record on October 1, 2014?The Moroccan currency, dirham, is pegged to the dollar at MAD10.21/$. If the Moroccan monetary authority changes the rate to MAD9.75/$ the dirham has ______________ Question 24 options: revalued devalued appreciated depreciatedPHP/1MYR 14.8 14.4 14.0 13.6 13.2 12.8 12.4 12.0 11.6 11.2 Figure 1: Yearly Historical Data for Exchange Rates Between Philippine Peso against 1 Malaysian Ringgit 1. Based on the figure above, what is the trend analysis of Philippine Peso (PHP) exchange rate against 1 Malaysian ringgit (MYR) in 2000 till 2020? 2000 [YR2000] 2001 (YR2001] 2002 (YR2002] 2003 (YR2003] 2004 (YR2004] 2005 (YR2005) 1900ZH시 9002 2007 (YR2007] 2008 (YR2008) 2009 (YR2009) 2010 [YR2010] ILTOZHAI TIOZ IZTOZHAJ ZTOZ 2013 (YR2013) 2014 (YR2014] 2015 (YR2015] 2016 (YR2016) 2017 (YR2017) 2018 (YR2018) 2019 (YR2019] 2020 (YR2020]
- AMg eru w Question The economy records the following transactions: . Imports of goods and services: $1569 billion Exports of goods and services: $1152 billion . Interest paid to the rest of the world: $500 billion Interest received from the rest of the world: $400 billion . US official reserves, -$10 billion Net Transfers: -$81 billion Investment in US from foreigners: $1440 . US investment abroad: $860 a. Calculate the Current Account balance, the Financial Account (Capital ACcount) balance: (No Dollar symbols) CA Balance: (hint: answer is negative) FA Balance: b. What is the statistical discrepancy? c. Is this country an 'Importer' or 'Exporter' of goods and services?A6 Use the following information to answer Questions 6-8 According to CNBC(28.2.2022 )the Russian ruble was trading as low as 119 per dollar as offshore trading started in the morning during Asia hours, from nearly 84 per dollar the previous close, according to Factset data. It later pared some of its losses, trading at 93 per dollar by 3:30 p.m. in Moscow 6.Calculate by how much did the Russian ruble depreciate in one day?.Accounting Duck Corporation "forecasted" on December 21, 2020 to sell a machine to a company in Italy. The selling price was 500,000 euros, to be paid on March 21, 2021. To hedge against fluctuations in the exchange rate, Duck entered into a forward contract on Dec. 21, 2020 to sell 500,000 euros on March 21, 2021, the agreed date of machine delivery, for $1.227 per euro. The company ends its fiscal year on December 31. The following exchange rates were quoted: Forward Rate Date Spot Rate (Delivery on 3/21/2020) 12/21/2020 1.228 1.227 12/31/2020 1.222 1.221 3/21/2021 1.225 Required: A. Prepare all journal entries relative to the above event on December 21, 2020. B. Prepare all journal entries relative to the above event on December 31, 2020. C. Prepare all journal entries relative to the above event on March 21, 2021.
- A U.S. firm holds an asset in France and faces the following scenario: State 1 State 2 State 3 State 4 Probability 25% 25% 25% 25% Spot rate $ 2.10 per euro $ 2.00 per euro $ 1.90 per euro $ 1.80 per euro P* € 1,500 € 1,400 € 1,300 € 1,200 P $ 2,160 $ 1,900 $ 1,480 $ 1,260 In the above table, P* is the euro price of the asset held by the U.S. firm and P is the dollar price of the asset. Required: Compute the exchange exposure faced by the U.S. firm. What is the variance of the dollar price of this asset if the U.S. firm remains unhedged against this exposure? If the U.S. firm hedges against this exposure using a forward contract, what is the variance of the dollar value of the hedged position?Required information McCarthy, Inc.'s Brazilian subsidiary borrowed 115,000 euros on January 1, 2017. Exchange rates between the Brazilian real (BRL) and euro (€) and between the U.S. dollar ($) and BRL are as follows: US$ per BRL $ 0.28 $ 0.25 $ 0.20 BRL per €. BŘL 4.20 January 1, 2017 Average, 2017 December 31, 2017 BRL 4.30 BRL 4.60 05 a017Recording Import Transactions Pinnacle Foods imports a variety of items for resale to U.S. retail‑ ers. Following is a description of purchases and foreign‑currency‑denominated payments made in the last accounting period, plus the direct exchange rates for each date: Country Amount Currency Spot rate at purchase Spot rate at payment Australia . . . . . . . . . . . . . . . . . . 200,000 Australian dollar $0.7600 $0.7300 Thailand . . . . . . . . . . . . . . . . . . 800,000 Baht 0.0345 0.0365 Hong Kong . . . . . . . . . . . . . . . . 5,000,000 Hong Kong dollar 0.1319 0.1362 Jordan . . . . . . . . . . . . . . . . . . . 500,000 Dinar 1.4100 1.3900 Required Prepare the journal entries made by Pinnacle, a U.S. company, to record the above purchase and payment transaction.
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