Question
An Indian Merchant importing goods from UK worth 1 million GBP. But there is no direct quotation between GBP INR is available in the market.
An Indian Merchant importing goods from UK worth 1 million GBP. But there is no direct quotation between GBP INR is available in the market. The spot rate in the market available is GBP USD 1.2100 INR USD 0.012.
a.Calculate the exchange rate between GBP INR using the above information
b.Assume that spot quotation between USD INR 80.7400- 80.8700. The six months forward is 216.25-218.25. Calculate the six months forward bid and ask rate for USD INR
Step by Step Solution
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Step: 1
a To calculate the exchange rate between GBP and INR we can use the given information Spot rate GBPU...
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Spreadsheet Modeling And Decision Analysis A Practical Introduction To Management Science
Authors: Cliff T. Ragsdale
5th Edition
324656645, 324656637, 9780324656640, 978-0324656633
