$19-13$

Spot and Forward RatesArvin Australian Imports has agreed to purchase $15,000$ cases of Australian wine for $4$ million Australian dollars at today$$s spot rate. The firm$$s financial manager, Sarah Vintnor, has noted the following current spot and forward rates:

$$

U$.$S$.$ Dollar$/$Australian Dollar

Australian Dollar$/$U$.$S$.$ Dollar

Spot

$0\mathrm{.}7930$

$1\mathrm{.}2610$

$30-$day forward

$0\mathrm{.}7927$

$1\mathrm{.}2615$

$90-$day forward

$0\mathrm{.}7921$

$1\mathrm{.}2625$

$180-$day forward

$0\mathrm{.}7911$

$1\mathrm{.}2640$

On the same day, Vintnor agrees to purchase $15,000$ more cases of wine in $3$ months at the same price of $4$ million Australian dollars.

What is the price of the wine in U$.$S$.$ dollars if it is purchased at today$$s spot rate?

What is the cost in U$.$S$.$ dollars of the second $15,000$ cases if payment is made in $90$ days and the spot rate at that time equals today$$s $90-$day forward rate?

If the exchange rate for the Australian dollar is $1\mathrm{.}20$ to $$1$ in $90$ days, how much will Vintnor have to pay for the wine $($in U$.$S$.$ dollars$)?$