Suppose you exported something from Mexico to the US and were quoted a price (payable immediately) of 20,000 Pesos. What would your receipt in US dollars be? _____________.
Q: Suppose you are a U.S. investor who is planning to invest $845,000 in Mexico. Your Mexican…
A: DATA GIVEN: Investment amount = $845,000 Investment gain in Mexico = 10.6% Exchange rate: Original…
Q: Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$1.10 million (Fijian…
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A: Following is the answer to the question.
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Suppose you exported something from Mexico to the US and were quoted a price (payable immediately) of 20,000 Pesos. What would your receipt in US dollars be? _____________.
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- Assume that today 1 Canadian dollar is worth 0.75 U.S. dollar. How many Canadiandollars would you receive for 1 U.S. dollar?today you notice the following exchange rate quotations. $1 is equal to 4.08 Argentine pesos. 1 Argentine peso = 0.44 Canadian dollars. You need to purchase 3251 Canadian dollars with U.S dollars. How many U.S dollars will you need for your purchase? (Do not round intermediate calculations and enter your answer rounded to 2 decimal places)(a) Suppose you are a Bangladesh Citizen who is planning to go to USA. Current Exchange Rate is Tk BDT/$ 85/86 and according to your estimation you need 3.5lacs taka for your trip. i. How much BDT do you need to cover your cost of trip? ii. What is the American Quote in this case? (b) The following exchange rates are given AUD/USD 1.1197/1.2135 & AUD/GBP 2.1920/2.2500. What is the European quote for Pounds?
- Suppose you are a U.S. investor who is planning to invest $805,000 in Mexico. Your Mexican investment gains 10.2 percent. If the exchange rate moves from 12.4 pesos per dollar to 12.7 pesos per dollar over the period, what is your total return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total return 4Suppose exchange rate of Japanese yen in US $ is $.010, exchange rate of euro in US $ is $1.34, and exchange rate of euro in Japanese yen is 139 yen and you have $100, 000 to invest. By looking the exchange rates, do you see triangular arbitrage opportunity? What is your profit or loss? Show the work to support your answer.Suppose a U.S. firm purchases some Chinese handicrafts. The china costs 1,000 Chinese yuan. At the exchange rate of $1.00 = 6.2 yuan, the dollar price of the goods is:
- Today you notice the following exchange rate quotation:$1 = 3 Argentine pesos1 Argentine pesos = 0.50 Canadian dollar1 Canadian dollar = 2.25 Mexico pesosYou need to purchase 0.1 million Canadian dollars with U.S. dollars. How many U.S. dollars will you need for your purchase? Please show your calculationSuppose you are a U.S. investor who is planning to invest $845,000 in Mexico. Your Mexican investment gains 10.6 percent. If the exchange rate moves from 12.8 pesos per dollar to 13.1 pesos per dollar over the period, what is your total return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)A product sells for $1,000 in the U.S. If the exchange rate between $ and euro is $1 = 0.90 euro, and if ppp holds, what would be the price of the same product in europe?
- Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$1.90 million (Fijian dollars, F$) worth of imports from Fiji in 90 days. Currently, the spot rate for the Fijian dollar is $0.56 per F$. (U.S. dollars). If If Retrojo were to exchange U.S. dollars for the required F$1,900,000.00 Fijian dollars, it would need $ Retrojo waits 90 days to make this exchange (perhaps due to insufficient funds on hand), and the Fijian dollar appreciates to $0.70 during those 90- days, then Retrojo would need $ (U.S. dollars). Thus, if Retrojo believes that the Fijian dollar will appreciate, it can its exposure to such exchange rate risk by locking in the original exchange rate through the use of a forward contract. reduce increase RE: 0/2 step)Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$1.10 million (Fijian dollars, F$) worth of imports from Fiji in 90 days. Currently, the spot rate for the Fijian dollar is $0.53 per F$. Suppose that Retrojo negotiates a forward contract with a bank, which commits it to purchasing Fijian dollars at F$1,100,000.00 at $0.53 per Fijian dollar in 90 days. Thus, Retrojo knows with certainty that it will need F$1,100,000.00 × $0.53 per Fijian dollars = $583,000.00 for this exchange. Assume the Fijian dollar depreciates over this time period to $0.42 per Fijian dollar. If this were the case the, outside of the contract with the bank, only $ (U.S. dollars) would be needed to exchange for the required F$1,100,000.00.Suppose that a US-based company is buying Chinese goods. Current exchange rate for Chinese Yuan is 0.15 USD. The price of goods is ¥13,000 per unit. The company is buying 800 units per year with a fixed contract for the next two years. Suppose that Chinese Yuan appreciate to 0.2 USD in the next year. The US importer will respond to this by lowering the demand to 600 units in the third year. What cash flow will be reflected on the balance of payments at the end of the third year? Your Answer: