Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following spot exchange rates are being quoted in the foreign exchange markets by the Nigerian branch of Barclays bank, involving the Ghanaian Cedi (

The following spot exchange rates are being quoted in the foreign exchange markets by the Nigerian branch of Barclays bank,
involving the Ghanaian Cedi (GCC), the Nigerian Naira (NNA), the U.S. dollar (USD) and the British pound (GBP).
NNAUSD=715.20-719.20
GCCUSD=11.1600-11.260
USDGBP=1.2250-1.2253
In long hand, the above means, for example, Barclays bank will buy USD and sell NNA at 715.20 and Barclays bank will sell USD and buy NNA at 719.20, with similar meanings for the other rates.
Q1./ Sally works as the finance director of Western Africa Trading. Sally's company wishes to buy 667 mio NNA (mio NNA means million NNA) and sell GBP and she uses the rates above. How many GBP will it cost Sally's company? Give your answer to the nearest GBP.
As usual, do your calculations in Excel and do NOT round until the very end.
image text in transcribed

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

Financial Management Core Concepts

Authors: Ray Brooks, Raymond Brooks

1st Edition

0321155173, 9780321155177

More Books

Students also viewed these Finance questions