Question
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2829 S$/US$. You have just placed an order for 29,000 motherboards at
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2829 S$/US$. You have just placed an order for 29,000 motherboards at a cost to you of 237.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 each.
What is your profit if the exchange rate goes down by 10 percent?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
