Today you notice the following exchange rate quotation: $1 = 3 Argentine pesos 1 Argentine pesos = 0.50 Canadian dollar 1 Canadian dollar = 2.25 Mexico pesos You 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 calculation

Q: The exchange rate is 113 Swiss francs per dollar. How many U.S. dollars are needed to purchase 2,500…

A: In the given case, we have provided the exchange rate of per dollar into swiss francs.And, we have…

Q: Destabilising speculation occurs when speculators        buy high and sell low.     buy low and…

A: Speculation occurs when the investor buys on the assumption that the price will increase in future…

Q: A television costs $755 in the United States. The same television costs 634.5 euros. If purchasing…

A: Purchasing power parity: Purchasing power parity (PPP) is a concept which means that exchange rates…

Q: urrent assets of NorthPole.com at 1.7 million, 3rd quarter $1.5 million ermanent current assets is:…

A: Current assets are those assets which can be used to pay for current laibilties that means short…

Q: During this coming year assuming interest rate parity, a.)you predict that the percentage change in…

A: Forward exchange rate from a spot exchange rate is calculated by this formula:

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: Currently, the spot exchange rate is $1.56 per £ and the three-month forward exchange rate is $1.58…

A: The objective of the question is to determine whether the interest rate parity (IRP) is currently…

Q: The most recent currency exchange rate between the British Pound (GBP) and the US Dollar (US) is…

A: The question is based on the concept of Foreign Exchange Management.The forex market enables…

Q: ARP/USD .0072 in nominal currency exchange rate terms. I can purchase a Dell laptop for $1,100 in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: you just returned from a trip to germany and have 277 euros in your pocket. How many dollars will…

A: GIVEN, EURO = 277 the U.S. dollar equivalent of the euro = 0.89

Q: A computer costs $ 1,300 in the United States. The same computer cost £1100 in Europe. Assuming that…

A: Computer Cost in USA = 1300 Computer Cost in Europe = 1100

Q: In Sweden, the exchange rate of the Norwegian krone is 0.95. The exchange rate of the Polish…

A: Arbitrage opportunity is the risk free opportunity available for short period due to mispricing in…

Q: er annum in the U.S. and 5.7% per annum in the U.K. Assume that you can borrow £1,000,000 or its…

A: In monetary terms, the exchange rate (also known as the foreign exchange rate, forex rate, or rate)…

Q: Suppose you exported something from Mexico to the US and were quoted a price (payable immediately)…

A: Export: A product or service that is manufactured in one nation but sold to a buyer in another…

Q: At today's spot exchange rates 1 U.S. dollar can be exchanged for 9 Mexican pesos or for 110.14…

A: 1 US Dollar = 9 Mexican pesos1 US Dollar = 110.14 Japanese yen

Q: The one-year interest rate is 1.00% in the U.S. and 3.10% in Canada. The current exchange rate of…

A: Using 1 USA = CAD 1.37

Q: Suppose one-year US Treasury bill pays 2.28% and one-year Canadian Treasury bill pays 0.95%. The…

A: Arbitrage is a process to earn profit by purchasing one security from the market and selling another…

Q: Use the information below to answer the questions that follow. U.S. $ EQUIVALENT CURRENCY PER U.S. $…

A: US DollarForeign currency13.723Poland Zloty10.709Jordan Dinar10.377Bahrain Dinar11.5591New Zealand…

Q: Use the following information on the U.S. dollar value of the pound sterling to answer Forward Rate…

A: b.  No effect

Q: Currently, the USD/MXN rate is 19.7800 and the six-month forward exchange rate is 20.1700. The…

A:

Q: You live in Australia and want to try to make some money through interest rate arbitrage abroad. You…

A: Arbitrage is the risk less profit that can by earned by buying and selling in two markets and taking…

Q: Assume that the current price of a Big Mac in the United States today is $5.75.  Assume also that…

A: Big Mac in the United States = $5.75 Big Mac in Peru =10.50 sol USDPEN exchange rate = 3.7400 sol…

Q: Suppose you long one Australian dollar call and one Australian dollar put with an exercise exchange…

A: a). Computation of the net call pay, net put pay and net combined pay:- Given Information:- Call…

Q: he current market exchange rate is 2.2 francs per pound. Suppose you need to buy 6 pounds using…

A: In international business the exchange rate between the currencies play very important role in…

Q: A computer costs $660 in the United States. The same model costs €515 in France. If purchasing power…

A: The purchasing power parity is used to measure the absolute purchasing power of different currencies…

Q: A computer costs $500 in the United States. The same model costs €550 inFrance. If purchasing power…

A:

Q: Blur Ltd, a UK importer, expects to make a payment of 1.8m Australian dollars (A$) for sure in one…

A: Hedging is a strategy to reduce the risk of price movement by creating an off-setting position in…

Q: Currently, the spot exchange rate is $1.59 per £ and the three-month forward exchange rate is $1.61…

A: Here,Here,Spot Exchange Rate is $1.59 per £Three Month Forward Exchange Rate is $1.61 per £Three…

Q: Your foreign exchange trader in the United States has quoted the following rates for the Swiss…

A: Here, Swiss Frans/USD Spot 1 Month 3 Month 6 Month $0.5965/72 50/61 127/143 242/267

Q: Suppose your company imports computer motherboards from Singapore. The exchange rate is $1.4878 per…

A: Exchange rate denotes the price of one country's currency with respect to the price of another…

Q: Let's suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60…

A: Exchange rate (ER) is a value at which payment is made in foreign currency to buy the goods.…

Q: o minimize the risk from exchange rate because the U.S. firm is going to receive euro 100,000 in 90…

A: Bank provide two rates for currency, spot rate and forward rate Spot Rate- It is the rate for…

Q: A computer costs $600 in the United States. The same model costs €555 in France. If purchasing power…

A: Our goal here is to ascertain the spot exchange rate between the euro and the dollar, maintaining…

Q: A New Zealand company needs to make a payment of 600,000 Thai Baht (THB). To do this it needs to…

A: Bid price refers to the price at which the forex trader buys the foreign currency while Ask price…

Q: If euros sell for $1.50 (U.S.) per euro, what should dollars sell for in eurosper dollar?

A: Direct Quote is a currency quote for foreign currency in per-unit terms of the domestic currency.…

Q: Travelex Australia provides the following three exchange rates. You assume that there is a…

A: Here, Bid RateAsk RateValue of Chinese Yuan (CNY) in Australian Dollar (AUD)0.20460.2243Value of…

Q: In the spot market, 7.3 pesos can be exchanged for 1 U.S. dollar. A pair of headphones costs $10 in…

A: Purchasing power parity: It is a method of comparing the purchasing power of the currencies by…

Q: You often travel to Australia and you need to exchange Australian dollars. Your bank provides the…

A: A rate through which individuals or companies convert their domestic currency with the other…

Q: Current exchange rate (Feb 15, 2018) is .0090 $/Yen. You speculate the exchange rate will be .0087…

A: The currency, which is going to be appreciated, should be short sold. In the given case, the current…

Q: rates in the table for the following question. As you leave Halifax, you convert 378 Canadian…

A: When anyone travels to another country than one needs the currency of that country and one has to…

Q: What is your profit from exploiting the opportunity once (in $)?

A: Exchange rateBidAskValue of yen in U.S. dollars$0.008$0.0081Value of Canadian dollar in U.S.…

Q: You are a U.S. importer and just placed an order of antiques worth £100,000 from a U.K supplier. You…

A: A foreign exchange payment is hedged through an option contract. Total cost of purchase needs to be…

Q: If one U.S. dollar buys 1.58 Canadian dollars, how many U.S. dollars can you purchase for one…

A: A rate through which individuals or companies convert their domestic currency with the other…

Q: Munich to Moscow. On your post-graduation celebratory trip you decide to travel from Munich,…

A: It represents the foreign currency exchange rate for the transaction between 2 currencies that are…

Q: NTERNATIONAL FINANCE Today you learned about following exchange rate quotes: (a) 1 KWD (Kuwaiti…

A: In the international business, there is a need for some other currencies but they can not be bought…

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.