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1 9 - 1 3 Spot and Forward RatesArvin Australian Imports has agreed to purchase 1 5 , 0 0 0 cases of Australian wine
Spot and Forward RatesArvin Australian Imports has agreed to purchase cases of Australian wine for million Australian dollars at todays spot rate. The firms financial manager, Sarah Vintnor, has noted the following current spot and forward rates:
US DollarAustralian Dollar
Australian DollarUS Dollar
Spot
day forward
day forward
day forward
On the same day, Vintnor agrees to purchase more cases of wine in months at the same price of million Australian dollars.
What is the price of the wine in US dollars if it is purchased at todays spot rate?
What is the cost in US dollars of the second cases if payment is made in days and the spot rate at that time equals todays day forward rate?
If the exchange rate for the Australian dollar is to $ in days, how much will Vintnor have to pay for the wine in US dollars
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