question #9 use figure 20.1 to solve

for both countries. What relationship are you relying on in answering? 9. Exchange Rate Risk Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 20.1. You have just placed an order for 30,000 motherboards at a cost to you of 147.80 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $121 each. Calculate your profit if the exchange rate goes up or down by 10 percent over the next 90 days. What is the break-even exchange rate? What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? Exchange Rates and Arbitrage Suppose the spot and six-month forward rates on the Norwegian al risk free rate in the United States is 3.8 2USD D. USS Country currency 1173 USD . Corn 3897 8.5280 2.5658 308 Europe Czech Rep kore Denmark krone Euro area euro Hungary forint 001642 0004511 04507 609.1000 22102 1578 55757 00406209 und 246 1800 Norway Krone Poland Zloty Romania leo Russia rubie Sweden Krona Switzerland franc 1-mos forward 3-mos forward 6-mos forward Turkey lira Country/currency USD equly Currency Americas Argentina peso Brazil real Canada dollar 8759 Chile peso 11417 Colombia peso Ecuador US dollar 2217 Medico peso 0718 13 9334 Peru new sol 3424 2 9210 Uruguay peso 04247 Venezuela b. fuerte 23.545 15748031 6.3500 Asia-Pacific Australian dollar 8507 1.1755 Imos forward 8489 11780 3-mos forward 8452 1.1831 6-mos forward 8397 11909 1628 6.5431 .129 77546 .01606 62.25095 0000817 12246 00843 118.62 00844 118.54 00844 118.49 .00845 118.37 2951 3.3887 .7843 12750 00982 101.805 0223 44.905 7667 1.3043 0008983 1113.2 03226 30 999 03045 32.843 00005 21355 2975 2808 01989 1342 10057 10362 10369 10382 4505 15649 15646 15639 15626 3.5617 50.274 7458 9655 9651 964 9632 22200 6391 China yuan Hong Kong dollar India rupee Indonesia rupiah UK pound 1-mos forward 3-mos forward 6-mos forward unch 5400 Japan yen Imos forward 3-mos forward 6-mos forward Malaysia ringgit New Zealand dollar 126 112 112 2.6516 1399 256738950 Middle East Africa Bahrain dinar Egypt pound Israel Shekel Jordan dinar Kenya shilling Kuwait diner Lebanon pound Saudi Arabia med ono9 90.NO 32 2976 15065 3.09 0006612 2665 0903 3.7529 Pakistan rupee Philippines peso Singapore dollar South Korea won Tawan dollar 0695 2723 South Africa and UAE dirham Thailand baht Kem dong CHAP