USD 0.0202675=1 INR and USD 2.59713=1 OMR. The OMR is not quoted against INR. You are required to identify the following; a)Determine the Exchange Rate for OMR/INR? How much INR the customer will be receiving if exchange OMR1,500?
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USD 0.0202675=1 INR and USD 2.59713=1 OMR. The OMR is not quoted against INR. You are required to identify the following;
a)Determine the Exchange Rate for OMR/INR?
How much INR the customer will be receiving if exchange OMR1,500?
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- 13- You are a U.S. importer who buys goods from many different countries. How many U.S. dollars do you need to settle each of the following invoices? 1,000,000 Australian dollars for wool blankets (exchange rate: A$1 = $0.769) 500,000 British pounds for dishes (exchange rate: £1 = $1.5855) 100,000 Indian rupees for baskets (exchange rate: Rs1 = $0.0602) 350 million Japanese yen for stereo components (exchange rate: ¥1 = $0.0069) 825,000 euro for German wine (exchange rate: €1 = $1.05) 14- What is the dollar value of the invoices in exercise 13 if the dollar: Depreciates 10 percent against the Australian dollar Appreciates 10 percent against the British pound Depreciates 10 percent against the Indian rupee Appreciates 20 percent against the Japanese yen Depreciates 100 percent against the euroSuppose that the 90-day forward rate on the euro is $1.45145, while the current spot rate is $1.4500. Which of the following best approximates the forward premium on an annualized basis? (Hint: Only consider 12 30-day months. In other words, consider a year to be only 360 days.) 0.10% 0.40% 0.20% 0.30%Suppose that a U.S. company wishes to purchase goods from a German producer. The U.S. firm agrees to take the delivery of the goods in three months and to pay €1 million Euros at that time. This company wishes to avoid this exchange rate risk by buying Euros at the 3-month forward rate, f = 0.95 (€/$). Then, how much this company would have to pay in US dollars in exchange for €1 million Euros? a. $1 million dollars. b. $1,052,632 dollars. c. $950,000 dollars.
- As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 100 Japanese Yen (100¥) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: i. If the bank's customer needs S$5,000 today, how much is that in RM?Mary Argent is a foreign exchange trader for a bank in New York. She has Si million (or its Swiss franc equivalent) for a short term money market investment and wonders if she should invest in U.S. dollars for three months, or make a covered interest arbitrage investment in the Swiss franc. She faces the following quotes: $1,000,000 1.2810 Arbitrage funds available Spot exchange rate (SFr./S) 3-month forward rate SFr./$) U.S. dollar 3-month interest rate Swiss franc3-month Interest rate 1.2740 4.800% 3.200% She should Borrow: A 780,600 SF franes (SWISS) B. 1.281.000 USD (US dollars) C. 1.281.000 SF franes (SWISS) D. TBO.000 USD (US dollars)Please no written by hand Let’s suppose you (USA dealer) imported one Lamborghini SVJ-Verde Scandal from Italian dealer on March 1, 2019 at € 400,000, payable in 30 days. The exchange rate on March 1, 2019 was 1.16 US$/€. Then you sold all of them in the US market at US$610,000 in cash on March 29, 2019. On April 1, 2019, you paid to Italian car dealer at the exchange rate of 1.26 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) Group of answer choices $106,000 $98,0210 $96,400 $92,020
- Otondo , a currency trader in East African Community, has ksh 400,000. He wishes to assess his triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the results. Explain your resultsAt the start of 1996, the annual interest rate was 8 percent in the United States and 4.8 percent in Japan. The exchange rate was 110 yen per dollar at the time. Mr. Jorus, who is the manager of a Bermuda-based hedge fund, thought that the substantial interest advantage associated with investing in the United States relative to investing in Japan was not likely to be offset by the decline of the dollar against the yen. He thus concluded that it might be a good idea to borrow in Japan and invest in the United States. At the start of 1996, in fact, he borrowed ¥1,000 million for one year and invested in the United States. At the end of 1996, the exchange rate became 120 yen per dollar. How much profit did Mr. Jorus make in dollar terms?The Central American country of Belize is one of approximately 14 Caribbean community countries that pegs its currency to the U.S. dollar. The pegged rate is 2 Belize dollars equal 1 U.S. dollar (2 BZD = 1 USD or 1 BZD = 0.50 USD). This is illustrated in the figure below. Exchange Rate (USD BZD) 2.00 1.00 0.50 D Quantity of Belize dollars traded per day How will the actions of speculators affect this market? O The Belize dollar supply curve will shift to the right and the Belize dollar demand curve will shift to the left. O The Belize dollar supply curve and the Belize dollar demand curve will shift to the right. O The Belize dollar supply curve will shift to the left and the Belize dollar demand curve shift to the right. The Belize dollar supply curve and the Belize dollar demand curve will shift to the left.
- A certain commodity cost 0.5 pound sterling in the United Kingdom. In U.S. denominated dollars, this same item can be purchased for 85 cents. The exchange rate is 1 pound sterling = $1.80 U.S. Solve, a.Should this commodity be purchased in the United Kingdom or in the United States? b. If 100,000 items comprise the purchase quantity, how much can be saved in view of your answer to Part (a)?What type of financial institution would a international export company used to manage customer payments and what specific financial tool could they use to ensure the payments are monitored and confirmed to the exporters receiving bank.A U.S. MNC has subsidiaries in Britain and Japan. Assume the revenue in both subsidiaries in local currency remains the same. British WOS WOS Revenue £100M ¥10 Bn exchange $1.7/£ rate to $1.6/£ Japanese ¥ 85.12/$ to ¥ 77.12/$ What will be the impact on the $ amounts from each WOS? O Increase from British WOS; Increase from Japanese WOS O decrease from British WOS; decrease from Japanese WOS O Increase from British WOS; decrease from Japanese WOS O decrease from British WOS; Increase from Japanese WOS