Exercise 1:The price of an evening dress from Elie Saab's Spring 2019 collection is 46,500,000 LBP.Adele has a concert in UK in March 2019 and wants to buy this dress. Her assistant gets herthe following information:Spot rateSpot ratea. What is the LBP/GBP cross rate?b. What is the price of the dress in GBP?c. What is the price of the dress in LBP using the Black-market rate ofLBP 37,500/USD?LBP 1,507.5/USDUSD 1.3/GBPExercise 2:The price of a Lamborghini Veneno 2022 is 6,500,000 EUR. Assume the following crossrates:USD 0.9756/EURTRY 18.613/USDDetermine the price of Lamborghini Veneno 2022 in both USD and TRY.Exercise 3:Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia.Standing in Singapore's new terminal #3 at Changi Airport, she looks at the foreign exchangequotes posted over the FX trader's booth. She wishes to exchange 1,000 Singapore dollars (S$or SGD) for Australian dollars (A$ or AUD). What Anne sees:Spot rate (SGD = 1.00 USD) 1.3400Spot rate (USD = 1.00 AUD) 0.7640a. What is the Singapore dollar to Australian dollar cross rate?b. How many Australian dollars will Anne get for her Singapore dollars?

The exchange rate refers to the rate at which one currency can be exchanged for another. The spot…

Answered: Exercise 1: The price of an evening…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.8P

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