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Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 21.1. You have just placed an order for 30,000 motherboards

Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 21.1. You have just placed an order for 30,000 motherboards at a cost to you of 218.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $185 each.

What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is your profit if the exchange rate goes up by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.)

What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.)

What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

image text in transcribed
onnect Production/bne/Ross FCF. 12e/Figure 21.jpg Currencies U.S.-dollar foreign-exchange rates in late New York trading US$ vs. USS vs, Thurs YTD chg Thurs - YTD chg Country/currency in US$ per USS (%) in US$ per USS (%) Americas Europe Argentina peso 1250 8.0001 22.7 Czech Rep. koruna 05050 19.800 -0.4 Brazil real 4476 2.2339 -5.4 Denmark krone 1858 5.3816 Canada dollar .9126 1.0958 3.2 Euro area euro 1.3869 7210 -0.9 Chile peso .001773 564.00 7.3 Hungary forint .004524 221.06 22 Colombia peso 0005169 1934.50 0.2 Norway Krone .1683 5.9433 Ecuador US dollor 1 1 unch Poland zloty .3306 3.0246 Mexico peso .0767 13.0434 unch Russia ruble .02807 35.620 Peru new sol 3561 2.808 0.2 Sweden krona 1537 6.5068 Uruguay peso 04379 22.8355 7.8 Switzerland franc 11373 .8793 Venezuela b. fuerte 157480 6.3500 unch 1-mos forward 11376 8791 3-mos forward 11381 .8786 Asia-Pacific 6-mos forward 1.1391 8779 Australian dollar .9274 1.0783 -3.9 Turkey lira 4749 2.1057 1-mos forward 9255 1.0805 4.0 UK pound 1.6893 5920 -2.0 3-mos forward 9216 1.0851 4.0 1-mos forward 1.6889 5921 -2.0 6 mos forward 9157 1.0920 -3.9 3-mos forward 1.6881 5924 -2.0 China yuan .1598 6.2590 3.4 6-mos forward 16867 5929 -2.0 Hong Kong dollar 1290 7.7528 unch India rupee 01663 60.150 -2.8 Middle East Africa Indonesia rupiah0000865 11555 -5.0 Bahrain dinar 2.6527 3770 unch Japan yen 009773 102.32 -2.8 Egypt pound 1427 7.0081 0.8 1-mos forward 009775 102.31 -2.9 Israel Shekel 2896 3.4528 -0.5 3.mos forward 009778 102.27 -2.9 Jordan dinar 1.4123 7081 0.1 6-mos forward 009784 102.21 -2.9 Kuwait dinar 35606 2809 0.6 Malaysia ringgit 3062 3.2659 -0.5 Lebanon pound 0006596 1516,10 0.7 New Zealand dollar 8533 1584 4.8 Saudi Arabia riyal 2666 3.7507 unch Pakistan rupee 0101498.645 -6.4 South Africa and 0953 10.4879 unch Philippines peso 0224 44.610 0.5 UAE dirham 2723 3.6731 unch Singapore dollar 7982 12528 -0.8 South Korea won 0009682 1032 80 Con N Ch Ch0 Du Taiwan dollar 03305 30256 WSJ Dollar Index 72.85 -0.01 -0.01 -1.31 Thailand bat 03090 2136 Vietnam | 00004712 | | WSI Market Broup -2.2 21690

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