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Problem 3 1 - 9 Exchange Rate Risk 1 . 2 5 Suppose your company imports computer motherboards from Singapore. The exchange points rate is
Problem Exchange Rate Risk
Suppose your company imports computer motherboards from Singapore. The exchange
points
rate is currently S $US$ You have just placed an order for motherboards
at a cost to you of Singapore dollars each. You will pay for the shipment when it
arrives in days. You can sell the motherboards for $ each.
a What is your profit at the current exchange rate? Do not round intermediate
calculations and round your answer to decimal places, eg
b What is your profit if the exchange rate goes up by percent? Do not round
intermediate calculations and round your answer to decimal places, eg
c What is your profit if the exchange rate goes down by percent? Do not round
intermediate calculations and round your answer to decimal places, eg A
negative answer should be indicated by a minus sign.
d What is the breakeven exchange rate? Round your answer to decimal places,
eg
e What percentage rise or fall does this represent in terms of the Singapore dollar
versus the US dollar? Input the value as a positive number. Enter your answer as a
percent rounded to decimal places, eg
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