Question
Anderson Australian Imports has agreed to purchase 10,000 cases of Australian beer for 5 million Australian dollars at today's spot rate. The firm's financial manager,
Anderson Australian Imports has agreed to purchase 10,000 cases of Australian beer for 5 million Australian dollars at today's spot rate. The firm's financial manager, Linda Wilson, has noted the following current spot and forward rates:
On the same day, Wilson agrees to purchase 10,000 more cases of beer in 3 months at the same price of 5 million Australian dollars. What is the price of the beer in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent. $ What is the cost in U.S. dollars of the second 10,000 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. $ If the exchange rate for the Australian dollar is 0.9106 to $1 in 90 days, how much will Wilson have to pay for the beer (in U.S. dollars)? Round your answer to the nearest cent. $ |
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