) Calculate how much sterling exporters would expect to receive or how much sterling

importers would pay, ignoring the banks compensation in each of the following situations, if

there were the exchange currency and sterling at the spot rate.

Spot rate are as follows

Bank Sells Bank buys

Danish k/ 9.4340 9.538

Japan / 203.65 205.75

Bank being asked to buy the Danish and will give the exporter.

i. A U.K exporter receives a payment from a Danish customer 150,000 kroners.

ii. A U.K importer buys goods from Japanese and pays a million Yen. (6 Marks)