The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan. The following quotes are provided by a Foreign Exchange (FX) dealer at the airport. BUY SELL YEN (Japan) 71 70 b) upon returning from the Japan, you have 75 000 YEN which you wish to convert back to AUD. How much will you receive?
The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan. The following quotes are provided by a Foreign Exchange (FX) dealer at the airport. BUY SELL YEN (Japan) 71 70 b) upon returning from the Japan, you have 75 000 YEN which you wish to convert back to AUD. How much will you receive?
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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Question
The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan.
The following quotes are provided by a Foreign Exchange (FX) dealer at the airport.
|
|
BUY |
SELL |
|
YEN (Japan) |
71 |
70 |
b) upon returning from the Japan, you have 75 000 YEN which you wish to convert back to AUD. How much will you receive?
Show workings and a concluding statement in your response.
Expert Solution
Step 1
Concept.
1. Buy rate is the rate at which dealers will buy the foreign currency.
2. Sell rate is the rate at which dealers will sell foreign currency.
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