Question
. A FX dealer provides a quote of AUD/USD0.755060. 1.Australian company ABC wishes to convert AUD$10 million into USD to invest in US stock market.
. A FX dealer provides a quote of AUD/USD0.755060.
1.Australian company ABC wishes to convert AUD$10 million into USD to invest in US stock market. If they accept the dealers quote, how much in USD will they receive? If Australian dollar appreciates by 50 points in both bid and offer price, how much USD will they receive?
2.Car manufacture Ford requires AUD$5 million to invest in Australian facilities. If they accept the dealers quote, how much in USD will they pay? If Australian dollar depreciates by 50 points in both bid and offer price, how much in USD will they pay now?
3.BHP has US$10 million that they wish to convert to AUD. If they accept the dealers quote, how much in AUD will they receive?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
