Question
Antique manufacturer in Malaysia is exporting goods to Australia. To ascertain the firms exposure to foreign exchange risk, the company needs to calculate the MYR/AUD
Antique manufacturer in Malaysia is exporting goods to Australia. To ascertain the firms exposure to foreign exchange risk, the company needs to calculate the MYR/AUD cross-rate. An FX dealer quotes the following rates:
USD/AUD 1.3315 67
USD/MYR 4.1539 601
You are required to calculate the MYR/AUD cross-rate and explain what the quote indicates from the dealer's perspective, and which quote would apply to the Antique Manufacturer?
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Bank Funding Financial Instruments And Decision Making In The Banking Industry
Authors: Santiago Carbó Valverde , Pedro Jesús Cuadros Solas , Francisco Rodríguez Fernández
1st Edition
3319307002,3319307010
