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QUESTION 26 AUS exporter has sold wool carpets to a buyer in the payment term of the transaction is net 60, the currency of the

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QUESTION 26 AUS exporter has sold wool carpets to a buyer in the payment term of the transaction is net 60, the currency of the transaction is Eurodotars. The carpets have been sped To minime exposure, the US exporter should Enter to a 60 day forward contract to sell Eurodollars Enter into a 60 day forward contract to purchase Eurodomars Immediately enter into a spot transaction for the purchase of Eurodollars Sel Cuodolars in 0 days on the spot market QUESTION 27 AUS mortis purchased denim jeans from a supplier in Turkey under the payment forms of dia 60 The currency of the transactions Euros. The merchandise shipped on May 10 On May 10 the spot rate on the Euro was 114 Temporter to reduce its exposure purchased a day call option on livros with a vie price of 115 on July 10, when the importer sogated to pay the seller in Turkey, the spot on the Euro117 on July 10, should Ercise the option to purchasers at the rate of 1 15 Exercise the option to so Euros at the rate of 1 15 Let the option expee and purchase Cures on the spot market at the rate of 117 at the tonere and purchase Cures on the market thee of 1.15 QUESTION 20 You have quotations for 1000 yards of fabric from the different course susterismo India the second suppliers Shanghe Chathe third spinata Indonesia. The supplier in China qed you a price of $3,000 EXW place of manufacture for 3.000 yards while the other two suppliers quoted you $2.000 EXW place of reclure for 3.000 yards Inland regard export cowance in indas $200 and 5150 in China and Indonesight om na to New Yorkis 51.000, from China and from Indonesia 5860 Inland begit New York 200 The rate of duty is 10 (on EXW vw) and other importance charges are $100 The supplier in the lowestimated that costs - Ch Indonesia da They will have the same estimated final cost

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