Q: The foreign exchange department at Tokyo’s Daiwa Bank quoted the spot rate
The foreign exchange department at Tokyo’s Daiwa Bank quoted the spot rate on the euro at €0.007269/¥. The 90-day forward rate is quoted at a premium of 5.42 percent on the euro. What is the 90-day fo...
See AnswerQ: The spot rate of the Australian dollar (A$) is A
The spot rate of the Australian dollar (A$) is A$1.1667/$. The Australian dollar is quoted at a 30-day forward premium of 4.90 percent against the U.S. dollar. What is the 30-day forward quote?
See AnswerQ: The foreign exchange department of Bank of America has a bid quote
The foreign exchange department of Bank of America has a bid quote on Canadian dollars (C$) of C$1.0800/$. If the bank typically tries to make a bid-ask spread of 0.5 percent on these foreign exchan...
See AnswerQ: Banco Santiago wants to make a bid-ask spread of 0
Banco Santiago wants to make a bid-ask spread of 0.65 percent on its foreign exchange transactions. If the ask rate on the Mexican peso (MP) is MP18.3092/$, what does the bid rate have to be?
See AnswerQ: What is the operating cycle, and how is it related to
What is the operating cycle, and how is it related to the cash conversion cycle?
See AnswerQ: Alcor Pharma just received revenues of $3,165,300
Alcor Pharma just received revenues of $3,165,300 in Australian dollars (A$). Management has the following exchange rates: A$1.08010/£ and $1.5906/£. What is the U.S. dollar value of the company’s rev...
See AnswerQ: Tricolor Industries has purchased equipment from a Brazilian firm for a total
Tricolor Industries has purchased equipment from a Brazilian firm for a total cost of 272,500 Brazilian reals. The firm has to pay in 30 days. Citibank has given the firm a 30-day forward quote of $0....
See AnswerQ: Covington Industries just sold equipment to a Mexican firm. Payment of
Covington Industries just sold equipment to a Mexican firm. Payment of 11,315,000 pesos will be due to Covington in 30 days. Covington has the option of selling the pesos today at a 30-day forward rat...
See AnswerQ: Barrington Fertilizers, Inc., exports its specialized lawn care products to
Barrington Fertilizers, Inc., exports its specialized lawn care products to Canada. It made a sale worth C$1,150,000, with the payment due in 90 days. Barrington’s banker gave it a forward quote of $0...
See AnswerQ: Moon Rhee Auto Supply, a Korean supplier of parts to Kia
Moon Rhee Auto Supply, a Korean supplier of parts to Kia Motors, is evaluating an opportunity to set up a plant in Alabama, where Kia Motors has an auto assembly plant for its SUVs. The cost of this p...
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