how many dollars would be required to purchase 1,000 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas?
how many dollars would be required to purchase 1,000 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The table lists foreign exchange rates for August 30, 2018. On that day, how many dollars would be required to purchase 1,000 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Use the direct quotation for your calculations. Round your answers to the nearest cent.
| Sample Exchange Rates: Thursday, August 30, 2018 | ||
| Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) |
Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2) |
|
| Australian dollar | 0.7264 | 1.3767 |
| Brazilian real | 0.2409 | 4.1504 |
| British pound | 1.3009 | 0.7687 |
| Canadian dollar | 0.7702 | 1.2984 |
| Chinese yuan | 0.1461 | 6.8448 |
| Danish krone | 0.1565 | 6.3889 |
| EMU euro | 1.1670 | 0.8569 |
| Hungarian forint | 0.00357015 | 280.10 |
| Israeli shekel | 0.2767 | 3.6136 |
| Japanese yen | 0.00901 | 110.99 |
| Mexican peso | 0.0523 | 19.1133 |
| South African rand | 0.0679 | 14.7205 |
| Swedish krona | 0.1096 | 9.1200 |
| Swiss franc | 1.0317 | 0.9693 |
| Venezuelan bolivar fuerte | 0.00000403 | 248409.0001 |
| Note: Column 2 equals 1.0 divided by Column 1. However, rounding differences do occur. | ||
| Source: Adapted from The Wall Street Journal (www.wsj.com), August 30, 2018. |
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