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 $185 each. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Profit at the current exchange rate What is your profit if the exchange rate goes up by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Profit if the exchange rate up by 10% What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) Profit if the exchange rate down by 10% What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) Break-even exchange rate What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change Currencies U.S.-dollar foreign-exchange rates in late New York trading US$ vs, - Thurs YTD chg in US$ per US$ (%) US$ vs, Thurs YTD chg Country/currency in US$ per US$ %) Americas Argentina peso .1250 8.0001 22.7 Brazil real .4476 2.2339 -5.4 Canada dollar .9126 1.0958 3.2 Chile peso .001773 564.00 7.3 Colombia peso .0005169 1934.50 0.2 Ecuador US dollor 1 1 unch Mexico peso .0767 13.0434 unch Peru new sol .3561 2.808 0.2 Uruguay peso .04379 22.83557.8 Venezuela b. fuerte 157480 6.3500 unch Country/currency Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Norway Krone Poland zloty Russia ruble Sweden krona Switzerland franc 1-mos forward 3-mos forward 6-mos forward Turkey lira UK pound 1-mos forward 3-mos forward 6-mos forward .05050 1858 1.3869 .004524 .1683 .3306 .02807 .1537 1.1373 1.1376 1.1381 1.1391 4749 1.6893 1.6889 1.6881 1.6867 19.800 5.3816 7210 221.06 5.9433 3.0246 35.620 6.5068 .8793 .8791 8786 .8779 2.1057 .5920 .5921 5924 5929 -0.4 -0.8 -0.9 2.2 -2.1 0.1 8.2 1.1 -1.5 -1.6 -1.6 -1.6 -2.0 -2.0 -2.0 -2.0 -2.0 Asia-Pacific Australian dollar .9274 1.0783 -3.9 1-mos forward .9255 1.0805 -4.0 3-mos forward .9216 1.0851 -4.0 6-mos forward .9157 1.0920 -3. 9 China yuan .1598 6.2590 3.4 Hong Kong dollar .1290 7.7528 unch India rupee .01663 60.150 -2.8 Indonesia rupiah .0000865 11555 -5.0 Japan yen .009773 102.32 -2.8 1-mos forward .009775 102.31 -2.9 3-mos forward .009778 102.27 -2.9 6-mos forward .009784 102.21 -2.9 Malaysia ringgit New Zealand dollar 8633 1.1584 -4.8 Pakistan rupee .0101498.645 -6.4 Philippines peso .0224 44.610 0.5 Singapore dollar .7982 1.2528 -0.8 South Korea won .0009682 1032.80 -2.2 Taiwan dollar .03305 30.256 1.1 Thailand baht .03090 32.367 -1.1 Vietnam dong .00004742 21090 -0.2 Middle East/Africa Bahrain dinar 2.6527 Egypt pound .1427 Israel Shekel .2896 Jordan dinar 1.4123 Kuwait dinar 3.5606 Lebanon pound .0006596 Saudi Arabia riyal .2666 South Africa rand .0953 UAE dirham .2723 3770 unch 7.0081 0.8 3.4528 -0.5 7081 0.1 2809 -0.6 1516.10 0.7 3.7507 unch 10.4879 unch 3.6731 unch Close Net Chg %ChgYTD%Chg WSJ Dollar Index 72.85 -0.01 -0.01 -1.31 Sources: ICAP plc., WSJ Market Data Group
