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

Q: 30-GBP against OMR spot exchange rate is GBP 3.500 = 1 OMR and 6 months forward rate is quoted as…

A: An exchange rate is the value of one currency in terms of another country's currency.

Q: Suppose that you know the following (i) yield 6% per annum (ii) New Zealand 3 month Treasury bills…

A: International Investment refers to funds flow among investors and investee belonging to two…

Q: 21-Mr. Ali is an Omani exporter and expected to receive 200 million INR after 30 days from its…

A: An exchange rate is the value of one currency in terms of another country's currency.

Q: Today's spot rate for the Indonesian rupiah (IDR) is USD/IDR 2,400.00, and the New Zealand dollar…

A: Given: USD/IDR = 2,400.00 USD / NZD = 1.600

Q: 22-An Omani company imported goods from Europe for EUR 20,000. The spot rate for EUR 2.5/OMR. If the…

A: given that,  2.5 EUR = 1 OMR   company imported goods from Europe for EUR20000.  how much the…

Q: 7.ABC Company, a British company, expects to receive $10,000,000 in 30 days. It wants to hedge its…

A: Forward contract is an agreement which is done between two parties to hedge foreign currency risk.…

Q: Transaction exposure. International Products has contracted for 6,000 winter hats from Russia. The…

A: Forward rate With spot rate, inflation rate in foreign currency, inflation rate in domestic currency…

Q: Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥2,150,000. The exchange rate…

A: The export price is ¥2,150,000. The exchange price is ¥294/OMR. The forecasted inflation rate in the…

Q: 2. One year THB and USD forward rate (Expected spot rate in one year) is THB46.75/USD. The…

A: Forward rate per USD = THB46.75 Inflation rate in Thailand = 9% Inflation rate in US = 4%

Q: 7-An Omani trader expects to receive USD 500,000 in one month. The current spot rate for US dollars…

A: An exchange rate is the value of one currency in terms of another country's currency.

Q: 90 Day Forward Rates for Hongkong Dollar Bid Rate Ask Rate USDHKD0.6050.610 A Hongkong exporter…

A: in this you have convert HONGKONG currency to US dollars and that will be amount to be received.

Q: S3 Q21 Foxtrot Inc., a Canadian, company, has just entered into a one year currency swap contract…

A: Currency Swap Contract : it is an agreement between parties to exchange a notional currency amount…

Q: X is considering whether to accept a 10% discount on buying imported machinery from China at USD…

A: Foreign exchange’s forward rate of the takes into consideration the interest rates of both domestic…

Q: Transaction exposure. International Products, Inc. has ordered 18,000 leather coats from Argentina…

A: Purchasing Power Parity : It is a theory to calculate the forward exchange rate between two currency…

Q: e) Suppose that the current spot exchange is: 1 BP (British pound) = $1.21. Use the following…

A: Interest rate parity theory (IRPT) states that the forward exchange rates are derived by the…

Q: X is considering whether to accept a 10% discount on buying imported machinery from China at USD…

A: The forward rate of the foreign exchange considers the interest rates of both the domestic countries…

Q: 5.ABC Company, a British company, expects to receive $10,000,000 in 30 days. It wants to hedge its…

A: Forward contract is a an agreement between the two parties to sell and buy the underlying assets or…

Q: Problem: 1. The exchange rates is 8 rubles per dollar. The Russian price level is 200. The price…

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

Q: 25) The current exchange rate between the Japanese yen and the U.S. dollar is ¥100 per dollar. If…

A: Depreciation of a currency implies that the currency has become cheaper. Thus, a lesser amount of…

Q: Gotohell buys and sells regularly with customers worldwide. Its home currency is the dollar. The…

A: Forward exchange rate is a rate at which currencies are converted in future or a rate at which…

Q: 1)  Assume the following exchange rates are indirect quotes, what are the equivalent direct quotes…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A US based IT firm required GBP 100000 in 180 days. The company feels that exchange rates are…

A: Hedge is defined as the financial term, which used to protect the investments or finances from the…

Q: Transaction exposure. International Products has contracted for 7,000 winter hats from Russia, The…

A: The question is based on the concept of exchange rate and the value of the exchange rate changes…

Q: Transaction exposure. International Products, Inc. has ordered 12,000 leather coats from Argentina…

A: spot rate = $1 for 1.1732 pesos Forward rate = Spot rate * (1+rate Argentina)/ (1+rate unites…

Q: Gotohell buys and sells regularly with customers worldwide. Its home currency is the dollar. The…

A: Forward exchange rate is a rate at which currencies are converted in future or a rate at which…

Q: A company has entered into a cash-settled forward contract to sell 10m pounds at $1.5/pound. If the…

A: Given The contract amount is 10m pounds exchange rate on the date of contract $1.5 pounds Exchange…

Q: ABC’s payoff on the forward contract is closest to:

A: Forward Contract: It is an over-the-counter contract between two parties agreeing to purchase or…

Q: The exchange rates for USD, JPY (Japanese Yen) and OMR are as follows, USD 16.0000/OMR, JPY…

A: Given:

Q: An US Company exported its goods to Oman at US$ 2,000,000 at an exchange rate of US$ 2.5/OMR. Due to…

A: At time of Import 1 OMR = US$ 2.50  Due to changes in Economic conditions, the exchange rate becomes…

Q: 2- Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥4,200,000. The exchange…

A: Export price = 4,200,00 yen exchange rate = 109.60 yen per dollar US inflation = 2.5% , Japan…

Q: On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer,  buys 825000 Yen worth…

A: In order to determine the transaction gain and loss, we have to determine the payable amount as of 1…

Q: The exchange rates for USD, JPY (Japanese Yen) and OMR are as follows, USD 8.0000/OMR, JPY…

A: USD 8.0000/OMR JPY 0.0800 /USD and to exchange JPY 20000, for OMR

Q: QUESTION It is 1 June, and DML Ltd. is anticipating payment of GBP100,000 to a British supplier in…

A: When the company transacts into the international market, then the fluctuations in the exchange rate…

Q: e) Suppose that the current spot exchange is: 1 BP (British pound) = $1.21. Use the following…

A: e) 1) The computation of forward rate: Hence, the forward rate is $1.268739.

Q: Gotohell buys and sells regularly with customers worldwide. Its home currency is the dollar. The…

A: Here, Receivable Amount after 6 months is €1,200,000 Exchange rate: Euros Per dollar Spot Rate:…

Q: 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…

A: Given: OMR borrowing rate = 5% US borrowing rate = 6% $1 = OMR 2.5000

Q: S3 Q22 Foxtrot Inc., a Canadian, company, has just entered into a one year currency swap contract…

A: Given data, Year-1 Number of payments=1*4=4 (Quarterly payments Spot exchange rate=0.74 LIBOR rate…

Q: An Omani importer expects appreciation of Us Dollar while importing goods for US $2,000. The…

A: The answer states the computation of gain from forward cover

Q: Today's spot rate for the Indonesian rupiah (IDR) is USD/IDR 2,400.00, and the New Zealand dollar…

A: cross rate refers to exchange rate between two currency. cross rate formula: AB×BC=AC where,…

Q: A US based IT firm required GBP 100000 in 180 days. The company feels that exchange rates are…

A: Solution-Following hedhingoptions are avilable(1)-Forward contract=foreign exposure×forward…

Q: 13-The current exchange rate between the US Dollar and the UK Pound is $1.60 = £1. After 30 days the…

A: The answer states the appreciated. And Depreciated currency

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.