OUESTION TWO

The following table shows the different exchange rates for British Pound Sterling quoted on the London market:

$\backslash$table$[[$Currency$,$Buy,Sell$],[$United States Dollar,$1\mathrm{.}8101,1\mathrm{.}8113],[$Euro$,1\mathrm{.}4366,1\mathrm{.}4380],[$Japanese Yen,$192\mathrm{.}802,194\mathrm{.}347]]$

A$.$ How much Sterling would you get today for the following transactions:

i$.$ Receiving $$150,000(2$ Marks$)$

ii$.$ Paying $60,000,000$ yen. $(2$ Marks$)$

iii. Paying $300,000.(2$ Marks$)$

iv$.$ Receiving $80,000.(2$ Marks$)$

v$.$ Paying $$850,000.(2$ Marks$)$

vi$.$ Receiving $40,000,000$ yen $(2$ Marks$)$

B$.$ An investor purchased shares of Company A listed on the New York Stock Exchange $($NYSE$)$ and shares of Company B listed on the Tokyo Stock Exchange $($TSE$).$ The investor earned a return of $12\mathrm{.}5\%$ on Company A$\text{'}$s shares and $9\%$ on Company B$\text{'}$s shares over one year. If the initial investment amounts were $$10,000$ in Company A and $1,000,000$ in Company B$,$ calculate the total return in USD for the investor's international investments assuming the buying and selling rate are quoted below :

$\backslash$table$[[$Currency$,$Buying,Selling$],[$USD$/$JPY$,110\mathrm{.}50,111\mathrm{.}00]]$

$(8$ Marks$)$

$($TOTAL: $20$ MARKS$)$