suppose the rate of $1 for yen is 83 yen, what is 2,5000,000 in dollar

Q: Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74,…

A: Given: T bill price = $9,708.74 Maturity value = $10,000 Exchange rate = 1.4200 Swiss francs Forward…

Q: Using Exhibit 5.7, calculate the three-month forward premium or discount for the Swiss franc versus…

A: Compute the three-month forward premium or discount as follows: Forward (n, Swiss franc) = Forward…

Q: A business executive needs to pay for a major product from Japan in two months (60 days). The ForEx…

A: A forward contract is a contract between two parties to buy or sell an asset at a future date at a…

Q: Assume that the indirect quote is for 10.0 Mexican pesos per U.S.dollar. What is the direct quote…

A: Given indirect quote is 10 Mexican pesos per US dollar. Formula for direct quote: Direct quote = 1/…

Q: What is the nominal interest rate on a one-year treasury bill with a face value of $1 million if its…

A: Treasury bills are issued by the government when there is a shortage of money with the government.…

Q: Suppose Apple is selling computers in Australia for A$5,500 when the exchange rate is A$ = $0.68. If…

A: Given, Exchange rate = A$0.68 Exchange rate rises = A$0.75 Apple selling computers = A$5,500…

Q: tractor has a cost of $ 1m for a given specification. If the current $: £ rate is 1.3500:1, i) What…

A: Exchange rate (ER) is a value at which two different currencies are exchanged or traded. To make…

Q: Using the spot rate of pounds quoted at $1.624-31, if you would like to convert $10,000 to pounds,…

A: Existing dollars would be first converted into pounds using the ask rate and then converted back to…

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: Below are the spot and 3-month quotation for RM/EUR and RM/JPY Kuala Lumpur Quotations: Spot 3-month…

A: Data given: Spot rate ::100 Yen = RM 3.9730 - 3.9755 3 -month forward :: 100 Yen = RM 3.9782 -…

Q: If the dollar is initially worth 120 yen and the exchange rate subsequently change so that the…

A: The term exchange rate refers to the rate that is used to denote the value of one currency in…

Q: If the dollar used to buy 100 yen and now buys 360 yen, there has been appreciation of the dollar.…

A: Currency appreciation is an increase in the value of currency in relation to another currency.

Q: Calculate the dollar rates of return on the following assets:a) a painting whose prices rises from…

A: Dividing the new value of investment with the old value of investment and substracting one from…

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

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

Q: If Bank A quotes you an exchange rate of $1.05 per pound. The same bank also quotes exchange rates…

A: Quoted exchange rate = $1.05 per pound Other quoted exchange rates: 1 Yen = $0.97 1 Yen = 0.70 pound

Q: If euros sell for $1.63 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: The question is related to calculation of euro per dollar Euro per dollar = 1 ÷ dollar per euro

Q: Today, one unit of Mexican Peso can purchase 2.60 units of Thailand Baht and it is forecasted that…

A: 1 mexican peso = 2.60 Thai baht   Now the depreciation in baht will be = 5%

Q: calculate the six-month forward premium or discount for the Swiss franc versus the U.S. dollar. For…

A: The cross-exchange rate is a type of exchange rate between a pair of currencies. In which no…

Q: Today, one unit of Mexican Peso can purchase 3.20 units of US Dollar and it is predicted that the US…

A: 1 Mexican Peso = 3.20 US Dollar Decline in US Dollar = 10%

Q: Suppose that the interest rate on Treasury bills is 6%, and every sale of bills costs P60. You pay…

A: Economic Order Quantity:  The economic order quantity is the ordering level at which the storage…

Q: If British pounds sell for $1.23 (U.S.) per pound, what should dollars sell for in pounds per…

A: The term exchange rate refers to the rate at which the currency of one country is exchanged for…

Q: you have $1000, the exchange rate is as following: $100: 1 ounce of gold, ￥500: 1 ounce of gold,…

A: Convert 1000 $ into ￥  @ exchange rate ￥8：$1   = 1000$ * 8￥ / $ = 8000 ￥

Q: Your company issues debt in yen that has a YTM in yen of 7.5%. The 1-year LIBOR rate in ye is 1% and…

A:

Q: If British pounds sell for $1.43 (U.S.) per pound, what should dollars sell for in pounds per…

A: Given, 1 British Pound =$1.43

Q: USD/AUD 0.5300 AUD/EUR 1.6428 USD/EUR 0.8782

A: Starting with 1 USD, converting USD to AUD , AUD to EUR and EUR to USD

Q: Today, one unit of Mexican Peso can purchase 2.60 units of Thailand Baht and it is forecasted that…

A: 1 Mexican Peso = 2.60 Thailand Baht Thailand Baht will depreciate by 5%

Q: If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective…

A: The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over…

Q: Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 10% against…

A: Exchange rate is the value of one country’s currency in exchange of other country’s currency. If…

Q: Suppose a company invests in a $50,000 United States Treasury bill at 3.35% interest for 28 days.…

A: Treasury bills: Treasury bills are issued by the government and sold by auctioning these bills…

Q: What is the rate of return on a USD500,000 investment when the price level in the US is USD19,440,…

A: Rate of return is referred to as that return on investment which is invested on spot rates and…

Q: A 91-day Treasury Bill with a face value of $150,000 is sold to yield 3.01 % p.a. What is the…

A: A T-Bill is a money market instrument issued by the Treasury. The maturity date of such bills is…

Q: under time value of money, a one dollar today is the same as a single dollar after 2 weeks. is it…

A: Time value of money is very important concept in the finance.

Q: What is the present value of RM27,000 perpetuinty per year discounted at 12%? Select one: a.…

A: In the given question we need to calculate the present value of perpetuity from following info.:…

Q: Suppose it takes 1.3037 U.S. dollars today to purchase one British pound in the foreign exchange…

A: Given information: Exchange rate of 1 British Pound is $1.3037 U.S dollar will depreciate by 15%…

Q: Suppose exchange rates are: EUR/AUD = 1.5550 GBP/AUD = 2.8923 GBP/EUR = 1.8600   Starting with…

A: Arbitrage profits are possible if there is mispricing in the quotes of cross exchange rates.

Q: Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes…

A: The question is based on the concept of business finance

Q: Aat you bought dollars when the exchange rate was TL8/S and opened a dollar account with an interest…

A: Initial Exchange Rate = 8 Future Exchange Rate = 10 Interest Rate = 2℅

Q: bigail lives in the UK and earns 40,000 pounds sterling per year. Her friend Barry lives in Japan…

A: Currency exchange can be defined as the process of valuing one currency over another currency in…

Q: Suppose that gold costs USD 330 an ounce in the United States and GBP 220 an ounce in UK. What must…

A: Exchange rate between two countries must be reflected by purchase power parity.

Q: Assume you are an exporter and you want to sell USD that you have received as export remittance. The…

A: Answer: The selling rate of 1 USD is INR 1/65.12

Q: A U.S. company can borrow 10,000 pounds in Great Britain for 6% interest, paying back 10,600 pounds…

A: Given that U.S Company borrow 10000 pound at rate of 6%, they are supposed to provide the 10600…

Q: If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 2 francs per dollar, then…

A: Answer

Q: You travel to Cancun Mexico for spring break. The current exchange rate is 14 pesos to the dollar.…

A: Rate Given  1$ = 14 pesos

Q: Suppose that one year from now you receive $620. What is it worth today if the discount rate is 2%…

A: Details given are :  Future value after one year = $620 Discount rate = 2% = 0.02 We need to…

Q: Assume you are in India and borrowed 800,000 Rs from one of your friends who lives in Australia.…

A: Interest free foreign currency loans are generally lent by one country to another(generally…

Q: Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.17. If…

A: New exchange rate = Exchange rate*(1-appreciation of base currency) New exchange rate of DK/$ =…

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.