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4.2 u enter your bank and you are shown the following bid-ask rates for the rand and the US dollar. Bid 10.4125 10.2014 Calculate the
4.2 u enter your bank and you are shown the following bid-ask rates for the rand and the US dollar. Bid 10.4125 10.2014 Calculate the margin or spread that the bank will earn for a transaction $100 000. SMM imports Limited an importer of Japanese television sets wants to pay for a consignment of television sets just received from their supplier. 4.3 Their bank gives them the following indicative rates. R1/ US Dollar rate- Japanese Yen/ US Dollar rate 10.23000 99.0600 Calculate the cross rate between the rand and the Japanese yen. How much must SMM imports pay in rands for the consignment worth 2 000 000 yen? Outline the various ways in which transaction exposure can be managed in international financial management. 4.4 (4) 4.5 (20) Question 5
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