Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $175 each.

image text in transcribed

a.

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.)

b. 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.)
c. What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. )
d. What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.)
e.

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.)

Figure 21.1 Exchange Rate Quotations in US$ per US$ .0167 .2391 .7608 .001287 .000297 1 .0532 .02678 60.0116 4.1816 1.3145 777.3 3365.07 1 18.7872 37.34 Country/currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso Ecuador US dollor Mexico peso Uruguay peso Asia-Pacific Australian dollar 1 month 3 month 6 month China yuan Hong Kong dollar India rupee Indonesia rupiah Japan Yen 1 month 3 month 6 month Kazakhstan tenge Macau pataca Malaysia ringgit New Zealand dollar Pakistan rupee Philippines peso Singapore dollar South Korea won Sri Lanka rupee Taiwan dollar Thailand baht vietnam dong Europe Bulgaria lev Croatia kuna Czech Republic koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway Krone Poland zloty Romania leu Russia ruble Sweden krona Switzerland frane 1 month 3 month 6 month Turkey lira Ukraine hryvnia UK pound 1 month 3 month 6 month Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand .6825 .6822 .6813 .6799 .1442 .1287 .01402 .0000737 .00915 .00915 .00915 .00915 .00264 .1248923 .246 .6607 .00647 .0197 .7400 .0008546 .0055063 .03328 .03272 .00004315 1.4652 1.4659 1.4678 1.4708 6.9367 7.7725 71.316 13573 109.28 109.29 109.30 109.31 378.6 8.007 4.0655 1.5135 154.63 50.801 1.3514 1170.2 181.61 30.05 30.56 23173 .56382 .1481 .04381 .1475 1.1026 .00327912 .008025 . 1105 .259 .2306 .01611 .1045 1.0297 1.0317 1.0358 1.0418 .1684 ..0407 1.3074 1.3062 1.3049 1.3038 1.774 6.75 22.827 6.778 .9070 304.96 124.61 9.0484 3.8614 4.336 62.073 9.5669 .9712 .9693 .9654 .9599 5.9391 24.5652 .7649 .7656 .7663 . 767 2.6529 .0633 .2894 3.2912 2.5974 .2747 .2665 .0695 .3769 15.8006 3.455 .3038 .39 3.6408 3.7517 14.3928 Figure 21.1 Exchange Rate Quotations in US$ per US$ .0167 .2391 .7608 .001287 .000297 1 .0532 .02678 60.0116 4.1816 1.3145 777.3 3365.07 1 18.7872 37.34 Country/currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso Ecuador US dollor Mexico peso Uruguay peso Asia-Pacific Australian dollar 1 month 3 month 6 month China yuan Hong Kong dollar India rupee Indonesia rupiah Japan Yen 1 month 3 month 6 month Kazakhstan tenge Macau pataca Malaysia ringgit New Zealand dollar Pakistan rupee Philippines peso Singapore dollar South Korea won Sri Lanka rupee Taiwan dollar Thailand baht vietnam dong Europe Bulgaria lev Croatia kuna Czech Republic koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway Krone Poland zloty Romania leu Russia ruble Sweden krona Switzerland frane 1 month 3 month 6 month Turkey lira Ukraine hryvnia UK pound 1 month 3 month 6 month Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand .6825 .6822 .6813 .6799 .1442 .1287 .01402 .0000737 .00915 .00915 .00915 .00915 .00264 .1248923 .246 .6607 .00647 .0197 .7400 .0008546 .0055063 .03328 .03272 .00004315 1.4652 1.4659 1.4678 1.4708 6.9367 7.7725 71.316 13573 109.28 109.29 109.30 109.31 378.6 8.007 4.0655 1.5135 154.63 50.801 1.3514 1170.2 181.61 30.05 30.56 23173 .56382 .1481 .04381 .1475 1.1026 .00327912 .008025 . 1105 .259 .2306 .01611 .1045 1.0297 1.0317 1.0358 1.0418 .1684 ..0407 1.3074 1.3062 1.3049 1.3038 1.774 6.75 22.827 6.778 .9070 304.96 124.61 9.0484 3.8614 4.336 62.073 9.5669 .9712 .9693 .9654 .9599 5.9391 24.5652 .7649 .7656 .7663 . 767 2.6529 .0633 .2894 3.2912 2.5974 .2747 .2665 .0695 .3769 15.8006 3.455 .3038 .39 3.6408 3.7517 14.3928

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Beyond Greed And Fear Understanding Behavioral Finance And The Psychology Of Investing

Authors: Hersh Shefrin

1st Edition

0195161211, 978-0195161212

More Books

Students also viewed these Finance questions