Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar):
Thursday, September 3, 2020
		Forward Rates
					Forward Rate
					at a Premium
	Spot Rate	30 Days	90 Days	180 Days	or Discount
Swiss franc	0.9093	0.908730	0.907590	0.905884	Premium
Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, September 3, 2020.

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.

Download spreadsheet Multinational Financial Management-912def.xlsx

How much in dollars does it cost Yohe to produce the SY-20? Round your answer to the nearest cent.

$ fill in the blank ___

What is the dollar sale price of the SY-20? Round your answer to the nearest cent.

$ fill in the blank___

What is the dollar profit that Yohe makes on the sale of the SY-20? Round your answer to the nearest cent.

$ fill in the blank ___

What is the percentage profit? Round your answer to two decimal places.

fill in the blank ___ %

If the U.S. dollar was to weaken by 7% against all foreign currencies, what would be the dollar and percentage profits for the SY-20? Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places.

Dollar profit: $ fill in the blank

Percentage profit: fill in the blank __ %

If the U.S. dollar was to weaken by 7% only against the Japanese yen and remained constant relative to all other foreign currencies, what would be the dollar and percentage profits for the SY-20? Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places.

Dollar profit: $ fill in the blank

Percentage profit: fill in the blank __ %

Using the 180-day forward exchange information, calculate the return on 1-year securities in Switzerland assuming the rate of return on 1-year securities in the United States is 4.6%. Assume that there are 360 days in a year. Round your answer to two decimal places.

fill in the blank ____ %

Assuming that purchasing power parity (PPP) holds, what would be the sale price of the SY-20 if it was sold in the United Kingdom rather than Japan? Round your answer to the nearest penny.

fill in the blank

additional information from the spreadsheet can be found below

Multinational Financial Management Exchange rates of currencies, relative to the U.S. dollar \begin{tabular}{|c|c|c|c|c|} \hline & Direct Quotation & \begin{tabular}{c} Indirect \\ Quotation \end{tabular} & & \\ \hline British pound & 1.3280 & 0.7530 & & \\ \hline EMU euro & 1.1853 & 0.8437 & & \\ \hline Japanese yen & 0.009416 & 106.2022 & & \\ \hline Swiss franc & 1.0997 & 0.9093 & & \\ \hline \multicolumn{5}{|c|}{ Key Currency Cross Rates } \\ \hline & Dollar & SFranc & Yen & Euro \\ \hline United Kingdom & 0.7530 & 0.8281 & 0.007090 & 0.8925 \\ \hline Euro & 0.8437 & 0.9278 & 0.007944 & 1 \\ \hline Japan & 106.2022 & 116.7906 & 1 & 125.8815 \\ \hline Switzerland & 0.9093 & 1 & 0.008562 & 1.0778 \\ \hline United States & 1 & 1.0997 & 0.009416 & 1.1853 \\ \hline \multicolumn{5}{|c|}{ Forward exchange rates of the Swiss franc } \\ \hline & & \multicolumn{3}{|c|}{ Forward Rates } \\ \hline & Spot Rate & 30 days & 90 days & 180 days \\ \hline Swiss franc & 0.9093 & 0.908730 & 0.907590 & 0.905884 \\ \hline Cost of Component X & SFr. 175 & & & \\ \hline Cost of Component Y & 25 & & & \\ \hline Cost of Component Z & 90 & & & \\ \hline Sale price of the SY-20 & 52,500 & & & \\ \hline \end{tabular} Multinational Financial Management Exchange rates of currencies, relative to the U.S. dollar \begin{tabular}{|c|c|c|c|c|} \hline & Direct Quotation & \begin{tabular}{c} Indirect \\ Quotation \end{tabular} & & \\ \hline British pound & 1.3280 & 0.7530 & & \\ \hline EMU euro & 1.1853 & 0.8437 & & \\ \hline Japanese yen & 0.009416 & 106.2022 & & \\ \hline Swiss franc & 1.0997 & 0.9093 & & \\ \hline \multicolumn{5}{|c|}{ Key Currency Cross Rates } \\ \hline & Dollar & SFranc & Yen & Euro \\ \hline United Kingdom & 0.7530 & 0.8281 & 0.007090 & 0.8925 \\ \hline Euro & 0.8437 & 0.9278 & 0.007944 & 1 \\ \hline Japan & 106.2022 & 116.7906 & 1 & 125.8815 \\ \hline Switzerland & 0.9093 & 1 & 0.008562 & 1.0778 \\ \hline United States & 1 & 1.0997 & 0.009416 & 1.1853 \\ \hline \multicolumn{5}{|c|}{ Forward exchange rates of the Swiss franc } \\ \hline & & \multicolumn{3}{|c|}{ Forward Rates } \\ \hline & Spot Rate & 30 days & 90 days & 180 days \\ \hline Swiss franc & 0.9093 & 0.908730 & 0.907590 & 0.905884 \\ \hline Cost of Component X & SFr. 175 & & & \\ \hline Cost of Component Y & 25 & & & \\ \hline Cost of Component Z & 90 & & & \\ \hline Sale price of the SY-20 & 52,500 & & & \\ \hline \end{tabular}