Bank of America is willing to buy or sell Canadian dollar for $.99. The bank is willing to buy or sell Nepalese rupee at an exchange rate of 97 rupee per dollar. The bank is willing to purchase Canadian dollar at an exchange rate of 1 rupee = .0104 Canadian dollars. Show how you can make a profit from triangular arbitrage.  What  would be your profit or loss if you had $16,000? What %?

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

A: Given,  Amount borrower = 800000INR Home currency = Indian INR Foreign Currency = Australian $  Spot…

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

A: The question is related to forex management. The details are given below.

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A:

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

A: Foreign Exchange Rates: The amount of money that is required to buy one unit of foreign currency…

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

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Q: Suppose exchange rate of Japanese yen in US $ is $.010, exchange rate of euro in US $ is $1.34, and…

A: When there are miss match in exchange rates, there is opportunity for triangular arbitrage profit.…

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A:

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A:

Q: A British company has a USD 1 million payable in two months.How can the British company hedge the…

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A: The Foreign Exchange rate is the exchange rate at which one country's currency exchanges with…

Q: You are a Canadian exporter expecting a payment of USD 1M in three months. You want to hedge your…

A: As the Canadian exporters have speculated that the exchange rate might go up in the future,

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A: Yes. It is possible of triangular arbitrage for the given exchange rates.

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A: Handicrafts cost = 1,000 Chinese yuan  $1.00 = 6.2 yuan

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

A:

Q: JJ Fashion Wholesalers Ltd, an Indian clothing manufacturer, has a contract to purchase cotton from…

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Q: JJ Fashion Wholesalers Ltd, an Indian clothing manufacturer, has a contract to purchase cotton from…

A:

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.