b) Given the following exchange rate quotes Eues E1/$1.1837 nd Eure El/0.7230 Poond E1/$1.6388 Illustrate the maximum possible gain from there quotations while in persesion-of $11,837 Assession
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- Please no written by hand Let’s suppose you (USA dealer) imported one Lamborghini SVJ-Verde Scandal from Italian dealer on March 1, 2019 at € 400,000, payable in 30 days. The exchange rate on March 1, 2019 was 1.16 US$/€. Then you sold all of them in the US market at US$610,000 in cash on March 29, 2019. On April 1, 2019, you paid to Italian car dealer at the exchange rate of 1.26 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) Group of answer choices $106,000 $98,0210 $96,400 $92,020A U.S. MNC has subsidiaries in Britain and Japan. Assume the revenue in both subsidiaries in local currency remains the same. British WOS WOS Revenue £100M ¥10 Bn exchange $1.7/£ rate to $1.6/£ Japanese ¥ 85.12/$ to ¥ 77.12/$ What will be the impact on the $ amounts from each WOS? O Increase from British WOS; Increase from Japanese WOS O decrease from British WOS; decrease from Japanese WOS O Increase from British WOS; decrease from Japanese WOS O decrease from British WOS; Increase from Japanese WOSJetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 in 2002 and 2003. Forward hedge exchange rate was 1 $/Euro in 2003. The market exchange rate was 1.83 $/Euro (i.e. rate without hedge) in 2003. If 1,500 Jetta were sold in US, in 2003, by 40% forward hedge and 60% not hedged. What would be profits or loss from sales of 1,500 Jetta in US? € 351,639 €1, 281,946 € 1,291,661 € 362,259
- A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the EUR/GBP exchange rate is 1.09, how much does the british-made car cost in EUR? a. 12,923 b. 13,462 c. 18,427 d. 15,260Janice is a U.S. citizen traveling to Mexico with $5,000. She should be exchange her dollars for ____ pesos at an exchange rate of U.S. dollars to Mexican pesos of 0.06. (Note: Round to the nearest one in foreign currency.) a) 52,457 Ob) 91,760 O c) 83,333 d) 74,242 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 0.8 €/$.. Dec 31, 2018: 1.5 €/$. Feb 1, 2019: 0.6 €/$. What was net income for 2018 and 2019, respectively? Group of answer choices -$200, -$100 -$100, $200 $300, -$200 $200, -$300
- Let’s suppose you (USA dealer) imported one Earth Equipment machine from German dealer on March 1, 2017 at € 300,000 each, payable in 30 days. The exchange rate on March 1, 2017 was 1.16 US$/€. Then you sold the machine in the US market at US$350,000 in cash on March 29, 2017. On April 1, 2017, you paid to Italian car dealer at the exchange rate of 1.19 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) Group of answer choices -7000 -9200 -4500 -10200The Korean Won has fallen nearly 20% over the past year relative to the US$: If the uncovered interest parity theory were correct, what should Korean interest rates have been one year ago if rates in the U.S. were 10%: (a) 10%; (b) 20%; (c) 30%; (d) 0 Please show workMary Argent is a foreign exchange trader for a bank in New York. She has Si million (or its Swiss franc equivalent) for a short term money market investment and wonders if she should invest in U.S. dollars for three months, or make a covered interest arbitrage investment in the Swiss franc. She faces the following quotes: $1,000,000 1.2810 Arbitrage funds available Spot exchange rate (SFr./S) 3-month forward rate SFr./$) U.S. dollar 3-month interest rate Swiss franc3-month Interest rate 1.2740 4.800% 3.200% She should Borrow: A 780,600 SF franes (SWISS) B. 1.281.000 USD (US dollars) C. 1.281.000 SF franes (SWISS) D. TBO.000 USD (US dollars)
- If 1 US ($) is worth 1.5 (E) British Pound sterling, then that suggests that the US $ is Weaker O Stronger Appreciating StrengtheningPQ 22b What is a situation the purchasing power exchange rate would be used?The demand for Australian dollars in the foreign exchange market equals 14000 – 3000e and thesupply of Australian dollars in the foreign exchange market equals 2000 + 2000e, where e is thenominal exchange rate expressed in euros per Australian dollar. If the Australian dollar is fixed at 2euros per Australian dollar, then to maintain this fixed rate, what is the required change in theReserve Bank of Australia’s holdings of euros? 1increase by 4000 euros 2decrease by 2000 euros 3decrease by 4000 euros 4increase by 2000 euros