1 Page 2: Question 13 (1 point) If an exchange rate changes from $1.50/ to $1.26/, by what % has the dollar appreciated or depreciated? (enter your answer as a whole number without the percent sign. For example, if you compute 12.34%, enter "12.34"if the value depreciated, enter a negative-looking percentage -- ie, if the change is -12.34%, enter"-12.34") 2 Page 3 3 Your Answer: Page 4 Answer Previous Page Next Pres Page 13 of 30 Submit Quli O of 30 questions Type here to search DE IN 11.05 21 1 Page 2: 2 Question 14 (1 point) IBM currently has 30 foreign orders outstanding, with the typical order averaging $250,000. Which of the following three alternatives is best to protect against credit risk on these foreign sales: Request a letter of credit from each customer. The cost to the customer would be $75 plus 0.25% of the invoice amount. To remain competitive, IBM would have to absorb the cost of the letter of credit. Factor the receivables. The factor would charge a nonrecourse fee of 1.6%. Buy FCIA insurance. The FCIA would charge a 1% insurance premium. Page 3: 3 FCIA Insurance Page 4 Factor the receivables Request the Letter of Credit Next Page Page 14 of 30 Previous Page 1106 21/01/2000 Type here to search Page 15 of 30 Page 1 Previous Page Next Page 1 Page 2 Question 15 (1 point) If the one-year interest rate is 4% on Swiss francs and 6% on U.S. dollars, and the exchange rate is currently SFr 1 - $0.94, what does the International Fisher Effect suggest the spot rate will be in 1 year? (Use the US Dollar as the reference currency and enter your answer as a whole number with no symbols. For example, if you compute $1.2345/SFr. enter 1.2345") 2 Page 3: Your Answer: 3 Answer Page 4 Page 15 of 30 Previous Page Next Page Submit Que of 30 questions saved 110 O Type here to search