Question 7 10 points Andrei D. won a prize of US$10,000 and decided to go on vacation abroad. He spent SGD5,700 in Singapore and JPY230,000 in Japan. The exchange rates were SGD1- US$0.74 and US$1-JPY106.28. When he returned to the US, he converted the remaining money into Guatemalan Quetzal (GTQ) at the exchange rate USS-GTQ7.70 and donated the money to a Guatemalan non-profit organization. How much, in GTQ did he donate to the non-profit organization? 30.031.37 O29.306.87 28.582.37 27,857.87 O27,133.37

Question 7 10 points Andrei D. won a prize of US$10,000 and decided to go on vacation abroad. He spent SGD5,700 in Singapore and JPY230,000 in Japan. The exchange rates were SGD1- US$0.74 and US$1-JPY106.28. When he returned to the US, he converted the remaining money into Guatemalan Quetzal (GTQ) at the exchange rate USS-GTQ7.70 and donated the money to a Guatemalan non-profit organization. How much, in GTQ did he donate to the non-profit organization? 30.031.37 O29.306.87 28.582.37 27,857.87 O27,133.37

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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25-A UK trader imported goods from US for $ 50,000 and the spot rate GBP 0.500 = 1 USD. The UK importer expected that GBP may appreciate by 4% after 30 days. What will be the new exchange rate after thirty days for 1 GBP? (consider the first 4 decimals to select the correct answer) a. None of the options b. USD 2.0833/GBP c. GBP 0.4900/USD d. USD 0.5000/GBP
Question You are a USA Manager of Apple Phone (iPhone). Your company Apple export and market iPhone in Malaysia. Malaysia currency is Ringgit and USA currency is US Dollar. The current exchange Rate is: 4 Ringgit = 1 US Dollar. In 2015 the rate was as 4.25 Ringgit = 1 US Dollar. In 2018 the rate was as 3.70 Ringgit = 1 US Dollar. In 2022 the rate is as 4.10 Ringgit = 1 US Dollar. You (your company Apple) exported iPhone to Malaysia as follows in million: In 2015 Total Export = 55m Ringgit. In 2018 Total Export = 77m Ringgit. In 2022 Total Export = 40m Ringgit. Now you calculate your profit in these three time points. When you earn more and when you earn less. How does fluctuation of exchange rate of these two currencies (USD and RM) affect your profit?
A1 2b Your Canadian company processes raw sugar for sale in the United States, and the firm has just received a container of raw material from the UK. You have an invoice that asks you to pay £20,000 in 30 days. The current exchange rate is $1.75/£. Invoice amount = £20,000 Exchange rate 1£ = $ 1.75 Cost of bill today in Canadian $ = Invoice amount*Exchange rate 1£ = 20,000*1.75 = Canadian $ 35,000 If you thought the dollar would trade at $2.0/£ in 30 days, what should you do?
1 Suppose that 1-year interest rate in US is 2%, 1-year interest rate in Japan is 3%, spot exchange rate is Yen 110/$, 1-year forward rate is Yen 112/$. Will you prefer to invest in Japan or in US? No difference to invest in Japan or in US A₁ B₁ C₁ In China D₂ In US In Japan
24-A company can borrow in OMR at a rate of 5% per annum in Oman (or) in the US at a rate of 6% per annum. The current rate of exchange is OMR 2.5000 = $1. What is the forward exchange rate for delivery in a year's time? (consider the first 4 decimals to select the correct answer) a. None of the options b. Forward exchange rate is OMR 2.5238/4 c. Forward exchange rate is OMR 2.4746/$ d. Forward exchange rate is OMR 2.4764/$
Question text In France, one cup of coffee is 1.64 EURO. The exchange rate is 0.73 EURO / USD. Using LOP find the price of one cup of coffee in the USA. Select one: a. 0.45 b. 12.370 c. 1.197 d. 2.247
6
A1
Question 2 You have the opportunity to store your hard-earned money in a French or a Japanese bank account. The Japanese bank account promises an interest rate of 2% a year. If you deposit 1000 Euro in the French bank account, interests will accrue so that you will have 1105 Euros in two years. Today's exchange rate is 1 Euro to 129.60 Yen. a) What should the 1-year forward exchange rate be for you to be indifferent between the two accounts? Make sure you explain what theories justify your calculations b) If the yearly inflation rate for France is 4%, what do you expect the Japanese inflation to be?
Finance 5. On 4/10/2022, the exchange rates are as follows: 1 British Pound = USD $1.30 1 Australian dollar = 0.57 British Pound 1 Australian dollar = 87.59 Japanese Yen $1 USD = 1.34 Australian dollar $1 USD = 124.46 Japanese Yen (a) ABC is considering expanding its sales of orange juice overseas. If the product is produced in ABC’s Australian brunch with cost 2.20 Australian dollars, ship to UK, where it can be sold for 1.54 British pound. What is the profit measured by US dollars on the sale? (b) If ABC produces a liter of orange juice in its US headquarters and ship it to Japan for USD $1.45 per unit. If the firm wants a 25% markup on the project, what should be the price of the juice sold in Japan measured by Yen, if using the exchange rate as shown above? (c) If the shipped orange juice in Japan is actually sold for 215 Yen, by PPP, what is the exchange rate between USD and Yen (Yen/USD $1) implied? Do not provide handwritten solution. Maintain accuracy and quality in your…

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