Question 1 (3.33 points) Eleanor just came back from Tahiti, where the CFP Franc (XPF) was worth $0.0083. Eleanor still has XPF30,000 from her trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $0.0081 per CFP Franc. Next week, Eleanor will be going to Vietnam and will need Vietnamese Dong. The airport foreign exchange desk will sell Eleanor Vietnamese Dong for $0.00006 per Vietnamese Dong. Eleanor met a tourist at the airport who is from Vietnam and is on his way to Tahiti. He is willing to buy XPF30,000 from Eleanor for 4,100,000 Vietnamese Dong. How many Vietnamese Dong will Eleanor get if she chooses to make the exchange using airport foreign exchange desk? 4,150,000.00 Vietnamese Dong. 4,050,000.00 Vietnamese Dong. 3,928,400.33 Vietnamese Dong. 4,041,128.75 Vietnamese Dong. Question 2 (3.33 points) Continued from the above question, should Eleanor accept the tourist's offer or cash the CFP Franc at the airport? Why or Why not? Eleanor shall accept the tourist's offer because Eleanor would get 171,599.67 more Vietnamese Dong. Eleanor shall not accept the tourist's offer because Eleanor would get 50,000.00 less Vietnamese Dong. Eleanor shall accept the tourist's offer because Eleanor would get 58,871.25 more Vietnamese Dong. Eleanor shall accept the tourist's offer because Eleanor would get 50,000.00 more Vietnamese Dong. Question 3 (3.33 points) Emma, a speculator, sells a call option on Australian Dollar (AU\$) for a premium of $0.03 per unit, with an exercise price of $0.67/AU$. The option will not be exercised until the expiration date, if at all. If the spot rate of the Australian Dollar is $0.72/A$ on the expiration date, Emma's net profit per unit is: +$0.03+$0.05+$0.02$0.05$0.02 Question 1 (3.33 points) Eleanor just came back from Tahiti, where the CFP Franc (XPF) was worth $0.0083. Eleanor still has XPF30,000 from her trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $0.0081 per CFP Franc. Next week, Eleanor will be going to Vietnam and will need Vietnamese Dong. The airport foreign exchange desk will sell Eleanor Vietnamese Dong for $0.00006 per Vietnamese Dong. Eleanor met a tourist at the airport who is from Vietnam and is on his way to Tahiti. He is willing to buy XPF30,000 from Eleanor for 4,100,000 Vietnamese Dong. How many Vietnamese Dong will Eleanor get if she chooses to make the exchange using airport foreign exchange desk? 4,150,000.00 Vietnamese Dong. 4,050,000.00 Vietnamese Dong. 3,928,400.33 Vietnamese Dong. 4,041,128.75 Vietnamese Dong. Question 2 (3.33 points) Continued from the above question, should Eleanor accept the tourist's offer or cash the CFP Franc at the airport? Why or Why not? Eleanor shall accept the tourist's offer because Eleanor would get 171,599.67 more Vietnamese Dong. Eleanor shall not accept the tourist's offer because Eleanor would get 50,000.00 less Vietnamese Dong. Eleanor shall accept the tourist's offer because Eleanor would get 58,871.25 more Vietnamese Dong. Eleanor shall accept the tourist's offer because Eleanor would get 50,000.00 more Vietnamese Dong. Question 3 (3.33 points) Emma, a speculator, sells a call option on Australian Dollar (AU\$) for a premium of $0.03 per unit, with an exercise price of $0.67/AU$. The option will not be exercised until the expiration date, if at all. If the spot rate of the Australian Dollar is $0.72/A$ on the expiration date, Emma's net profit per unit is: +$0.03+$0.05+$0.02$0.05$0.02
