Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 5 million Australian dollars at today's spot rate. The firm's financial manager, Sarah Vintnor, has noted the following current spot and forward rates: U.S. Dollar/ Australian Dollar Australian Dollar/ U.S. Dollar Spot 0.7259 1.3776 30-day forward 0.7264 1.3767 90-day forward 0.7279 1.3738 180-day forward 0.7289 1.3719 On the same day, Vintnor agrees to purchase 15,000 more cases of wine in 3 months at the same price of 5 million Australian dollars. What is the price of the wine in U.S. dollars if it is purchased at today's s
Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 5 million Australian dollars at today's spot rate. The firm's
| U.S. Dollar/ Australian Dollar |
Australian Dollar/ U.S. Dollar |
|
| Spot | 0.7259 | 1.3776 |
| 30-day forward | 0.7264 | 1.3767 |
| 90-day forward | 0.7279 | 1.3738 |
| 180-day forward | 0.7289 | 1.3719 |
On the same day, Vintnor agrees to purchase 15,000 more cases of wine in 3 months at the same price of 5 million Australian dollars.
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What is the price of the wine in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent.
$
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What is the cost in U.S. dollars of the second 15,000 cases if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate? Round your answer to the nearest cent.
$
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If the exchange rate for the Australian dollar is 1.29 to $1 in 90 days, how much will Vintnor have to pay for the wine (in U.S. dollars)? Round your answer to the nearest cent.
$
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