Quartzite. The spot rate for Mexican pesos is Ps12.44 = $1.00. If the U.S.-based company Quartzite Inc. buys Ps546,000 spot from its bank on Friday, how much must Quartzite pay and on what date? How much must Quartzite pay? The cost in US$ is $ (Round to the nearest cent.) On what day? (Select from the drop-down menus.) Spot transactions are settled in business days, so in this case, ID
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- Suppose your company imports computer motherboards from Singapore. The exchange rate is $1.4878 per Singapore dollar. You have just placed an order for 41107 motherboards at a cost to you of S147 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $118 each. What is the break-even exchange rate? NOTE: Enter the PERCENTAGE number rounding to two decimals.Last year, your company sold electronic products to Brazil. You are expecting to receive Real 850,000 in 6 months. The following quotations are provided by a currency dealer: In $ Real 1 m. forward 3 m. forward per $ 2.3810 2.3753 0.4200 0.4210 0.4350 2.2989 6 m. forward 0.4115 2.4301 If you are completely confident that the spot rate in 6 months will be 0.4228, do you need to take a short or long position in Real forward contract?First America Bank’s monthly payment charge on a 48-month, $20,000 loan is $568.26. The U.S. Bank’s monthly payment fee is $577.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? (Use Table 14.1.) Note: Round your final answers to the nearest hundredth percent. APR First America Bank between % and % U.S. Bank between % and % TABLE 14.1 ANNUAL PERCENTAGE RATE NUMBER OF PAYMENTS 10.00% 10.251% 10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50% 12.75% 13.00% 13.25% 13.50 13.75% (FINANCE CHARGE PER $100 OF AMOUNT FINANCED) 1 0.83 0.85 0.87 0.90 0.92 0.94 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.15 2 1.25 1.28 1.31 1.35 1.38 1.41 1.44 1.47 1.50 1.53 1.57 1.60 1.63 1.66 1.69 1.72 3 1.67 1.71 1.76 1.80 1.84 1.88 1.92 1.96 2.01 2.05 2.09 2.13 2.17 2.22 2.26 2.30 4 2.09 2.14 2.20 2.25 2.30 2.35 2.41 2.46 2.51 2.57 2.62 2.67 2.72 2.78 2.83 2.88 5 2.51 2.58 2.64 2.70 2.77 2.83 2.89…
- Q3. Cold Storage Malaysia Sdn Bhd needs to pay AUD 575,000 in 2 months time for the purchase of fresh fruits and vegetables from an Australian supplier. Knowing that it is exposed to fluctuations in AUDIMYR exchange rate, Cold Storage is considering the following alternatives: Alternative 1: Do nothing, i.e. to wait until the AUD is due to be paid in 2 months' time and to buy the amount required at whatever spot rate at that time. Alternative 2: Hedge by entering into an FX forward contract. i. Explain what Cold Storage need to do if Alternative 1 were selected. ii. Again if Altermative 1 were to be used, calculate the amount in MYR that Cold Storage would pay in| 2 months from now under the different AUD/MYR exchange rate scenarios at maturity by filling up the blank spaces in the following Table 1. Also compute potential gain or loss to Cold Storage in MÝR in each scenario. Table 1 Amount To Be If Spot Rate Gain / (Loss) Allocated at Maturity is... MYR per AUD in MYR 3.1000 0.0085…A bank in Toronto charges 3.25% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3533. a. How many Canadian dollars will you have to pay to purchase US$1,405? Round to the nearest cent b. How much commission in Canadian dollars (C$) will you pay the bank for the above transaction? 2. Skis are listed by a manufacturer for $850, less trade discounts of 30% and 18%. What further rate of discount should be given to bring the net price to $443?Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per U.S. Dollar Suppose you would like to buy Canadian Dollars and sell U.S. Dollars. Given the quotes above, what rate would you receive? Group of answer choices 0.0115 CAD per USD 2.5249 CAD per USD 1.2682 CAD per USD 1.2567 CAD per USD
- A bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3379. a. How many Canadian dollars will you receive from the bank if you sell US$1,325? $0.00 X Round to the nearest cent b. How much commission will you pay the bank for this transaction? Round to the nearest centGive typing answer with explanation and conclusion 1. You enter an NDF to buy UYU (Uruguayan Peso) for $.0363/UYU. The contract size is UYU50,000,000 and the contract matures in six months. If the spot rate is $.0381/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total? If the spot rate is $.0346/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?Suppose your company imports computer motherboards from Singapore. The exchange rate is $1.4923 per Singapore dollar. You have just placed an order for 38251 motherboards at a cost to you of S159 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $118 each. Calculate your profit if the exchange rates goes up by 14.73% over the next 90 days. NOTE: Enter the number rounding to four DECIMALS.
- The 6-month interest rate in the US is 12.25% p.a. The 6-month interest rate in Canada is 15.25% p.a. The spot rate is US$0.8203/Canadian$ and the 6-month forward rate is US$0.8113/Canadian$. For a transaction size of US$700,000, how can an investor take advantage of the situation without taking undue risks? Ignore transaction costs and income taxesA bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3973. a. How many Canadian dollars will you receive from the bank if you sell US$1,310? Round to the nearest cent b. How much commission will you pay the bank for this transaction?K (Foreign exchange arbitrage) You own $12,000. The dollar rate in Tokyo is ¥216.9658/$. The yen rate in New York is given in the following table: Selling Quotes for Foreign Currencies in New York Country-Currency Contract Spot 30-day 90-day (Click on the icon in order to copy its contents into a spreadsheet.) Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain in dollars? Japan-yen $/Foreign Currency The statement above is 0.004673 0.004849 0.004799 + "Assuming no transaction costs, the rates in Tokyo and New York are out of line. Therefore, arbitrage profits are possible." ... (Select from the drop-down menu.)