Answered step by step
Verified Expert Solution
Question
1 Approved Answer
maximizes the dollar value of the currency holdings at the end of the day. Problem 10. (20 points) Donald Rump is the international funds manager
maximizes the dollar value of the currency holdings at the end of the day.
Problem 10. (20 points) Donald Rump is the international funds manager for Countribank Each day Donald's job is to determine how the bank's current holdings of dollars, pounds, marks, and yen should be adjusted to meet the day's currency needs. Today the exchange rates between the various currencies are given in Table 1. For example, one dollar can be converted to .58928 pounds, or one pound can be converted to 1.697 dollars. At the beginning of the day, Countribank has the currency holdings given in Table 2 At the end of the day, Countribank must have at least the amounts of each currency given in Table 3. Donald's goal is to each day transfer funds in a way that makes currency holdings satisfy the previously listed minimums, and maximizes the dollar value of the currency holdings at the end of the day. To figure out the dollar value of, say, one pound, average the two conversion rates. Thus, one pound is worth approximately 1.697+(1/0.589281.696993 dollars Table 1 To From Dollars Pounds 697 Marks Dollars Pounds 58928 1.743 338081 Marks Yen 138.3 2.9579 234.7 57372 007233 79.346 cn 00426 0126 Table 2 Units Dollars Pounds Marks Yen Currency (in Billions) 8 8 Table 3 Units Dollars Pounds Marks Yen Currency (in Billions 10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started