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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.) Answer is complete and correct. Profit at the current exchange rate $ 317,799.00 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.) Answer is complete but not entirely correct. Profit if the exchange rate up by 10% $ 893,830.80 X 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.) Answer is not complete. Profit if the exchange rate down by 10% What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) X Answer is not complete. Break-even exchange rate S$ /$ 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.) Answer is not complete. Percentage change % Fall Malaysia ringgit .3062 3.2659 -0.5 Lebanon pound .0006596 1516.10 0.7 New Zealand dollar .8633 1.1584 -4.8 Saudi Arabia riyal .2666 3.7507 unch Pakistan rupee .01014 98.645 -6.4 South Africa rand .0953 10.4879 unch Philippines peso .0224 44.610 0.5 UAE dirham .2723 3.6731 unch Singapore dollar .7982 1.2528 -0.8 South Korea won .0009682 1032.80 -2.2 Close Net Chg %ChgYTD%Chg Taiwan dollar .03305 30.256 1.1 Thailand baht .03090 32.367 -1.1 WSJ Dollar Index 72.85 -0.01 -0.01 -1.31 Vietnam dong .00004742 21090 -0.2 Sources: ICAP plc., WSJ Market Data Group
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