Question
13. Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 6 million Australian dollars at today's spot rate. The firm's financial
13. Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 6 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 | 0.7285 | 1.3727 |
30-day forward | 0.7287 | 1.3723 |
90-day forward | 0.7294 | 1.3710 |
180-day forward | 0.7306 | 1.3687 |
On the same day, Vintnor agrees to purchase 15,000 more cases of wine in 3 months at the same price of 6 million Australian dollars.
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What is the price of the wine in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent.
$
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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? Round your answer to the nearest cent.
$
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If the exchange rate for the Australian dollar is 1.31 to $1 in 90 days, how much will Vintnor have to pay for the wine (in U.S. dollars)? Round your answer to the nearest cent.
$
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