Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4 million Australian dollars at today's spot rate The firm's financial manager, Sarah Vintnor, has noted the following current spot and forward rates U S Dollar Australian Dollar Australian Dollar U S Dollar Spot 0 7221000 1 3848497 30 day forward 0 7221059 1 3848384 90 day forward 0 7220788 1 3848904 180 day forward 0 7220438 1 3849575 On the same day, Vintnor agrees to purchase 15,000 more cases of wine in 3 months at the same price of 4 million Australian dollars What is the price of the wine in U S dollars if it is purchased at today's spot rate Round your answer to the nearest cent Write out your answer completely For example, 25 million should be entered as 25,000,000 $ What is the cost in U S dollars of the second 15,000 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 Write out your answer completely For example, 25 million should be entered as 25,000,000 $ If the exchange rate for the Australian dollar is 1 32 to $1 in 90 days, how much will Vintnor have to pay for the wine (in U S dollars) Round your answer to the nearest cent Write out your answer completely For example, 25 million should be entered as 25,000,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 18, 2024

Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4 million Australian dollars at today's spot rate. The firm's financial manager,

Arvin Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4 million Australian dollars at today's spot rate. The firm's financial manager, Sarah Vintnor, has noted the following current spot and forward rates:

	U.S. Dollar/ Australian Dollar	Australian Dollar/ U.S. Dollar
Spot	0.7221000	1.3848497
30-day forward	0.7221059	1.3848384
90-day forward	0.7220788	1.3848904
180-day forward	0.7220438	1.3849575

On the same day, Vintnor agrees to purchase 15,000 more cases of wine in 3 months at the same price of 4 million Australian dollars.

What is the price of the wine in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent. Write out your answer completely. For example, 25 million should be entered as 25,000,000.

$
What is the cost in U.S. dollars of the second 15,000 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. Write out your answer completely. For example, 25 million should be entered as 25,000,000.

$
If the exchange rate for the Australian dollar is 1.32 to $1 in 90 days, how much will Vintnor have to pay for the wine (in U.S. dollars)? Round your answer to the nearest cent. Write out your answer completely. For example, 25 million should be entered as 25,000,000.