if Peter exchanges NZD1,250.00 for SGD.

Q: An Australia basedAn Australia based company takes a US$1 million £ variable rate loan in the United…

A: The Australian business incurs many risks when it takes out a US$1 million variable rate loan in the…

Q: Give typing answer with explanation and conclusion  Stephanie G. has just returned from a long trip…

A: The foreign exchange rate is the exchange rate at which the currencies of different countries are…

Q: The following quotes are provided by a Foreign Exchange (FX) dealer at the airport.     BUY SELL…

A: 1 AUD=70/71 YEN Japanese yen to buy with 30000 AUD  Since we are selling AUD to buy YEN, we will be…

Q: ya has 400 Euros (the European Union currency) and desires Indian Rupees. Using the foreign exchange…

A: Currencies are converted into other currencies based on exchange rate but some of these are…

Q: Explain your understanding of currency hedging. Why is hedging necessary? If your company is…

A: Foreign exchange- Foreign exchange is the conversion of one currency into another at a specific rate…

Q: While on vacation in Europe, you decide to visit Britain. You estimate that you need 200 pounds for…

A: First convert Pounds to dollars=200*1.5867=317.34 dollars

Q: Scenario: Lima Tech Lima Tech is a developer of software for K-12 children. The company has…

A: Hedging is a risk management strategy used by both people and businesses to lessen the likelihood of…

Q: Mo. Jeanette Johnson is going to Saudi Arabia next week for Spring break. She inquires about the…

A: Concept. Bid rate is the buying rate of bank and Ask rate is the selling rate of bank.

Q: Before boarding her flight to Zurich, Switzerland, Amber purchased CHF1,100 from her bank when the…

A: The ask/bid price in foreign exchange is used to determine the exchange rate that the brokers offer…

Q: Define Exchange rate and distinguish between direct and indirect quote.   Johnson is a US citizen…

A: Meaning of exchange rate Exchange rate means how one nation currency is exchange with other nation…

Q: Question Exchanging dollars for euros to pay a computer manufacturer in Belgium would occur Answer…

A: Option d is correct.  Because all the exchange of foreign currency is taken in foreign exchange…

Q: Paula has $100,000.  The following quotations are available to her for US dollars ($), Euros (€) and…

A: Cross exchange rate using French Bank and Japanese Bank =€0.0098/¥ *  ¥90.40/$ = 0.88592 € / $

Q: Anne Dietz at Changi # 3 (Singapore). Anne Dietz lives in Singapore, but is making her first…

A: We need to use the spot rates provided for Singapore dollar to US" data-mce-style="box-sizing:…

Q: Anne Dietz at Changi #3 (Singapore). Anne Dietz lives in Singapore but is making her first business…

A: The Cross rate refers to the concept which states the foreign rate that tells us the exchange rate…

Q: Angus visits the U.S. using a pre-paid and all-inclusive package. He decides, however, to get some…

A: When he went to U.S. & buys the $110,exchange rate was £1=$1.23 To buy $110, he gave…

Q: don't give hand written solution.

A: To know how much U.S. dollars Micky Python will receive from converting €550,000 and £500,000 under…

Q: Good day,   How should I resolve this question, please?   Your friend from Australia purchased a…

A: Current exchange rate = C$1 = A$1.0227 Value of computer = C$3,900 In Australian dollars, value of…

Q: Isaac Díez. Isaac Díez Peris lives in Rio de Janeiro. While attending school in Spain he meets Juan…

A: Solution is given below :-       €1 = =GTQ 10.5508     R$  1 = =€ 0.5027     R$ 1 = =GTQ…

Q: Currently AUD/USD currency pairs have a quote of 0.7197-99 in Oanda trading platform. If you follow…

A: When there is expectation that prices will go down then there is need to short sell and this gives…

Q: (a) Hedgers and Speculators have a symbiotic relationship. Explain what this means. The treasurer of…

A: Hedging is a risk management strategy employed by individuals and businesses to mitigate or offset…

Q: The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan.   The…

A: Concept. 1. Buy rate is the rate at which dealers will buy the foreign currency. 2. Sell rate is the…

Q: (b) Jackton Company limited is a UK firm that has bought goods from a US Supplier and must pay US $4…

A: Conclusion:Forward Contract: GBP 2,222,222.22Money Market Hedge: GBP 2,184,002.18Lead Payment: GBP…

Q: Use the following information on the U.S. dollar value of the euro to answer the question. Forward…

A: Introduction: Foreign currency transaction gain or loss is the change in the foreign currency…

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.