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The foreign exchange department of Bank of India has a bid quote on Indian rupees (Rs) of Rs.43.21/$. If the bank typically tries to earn
The foreign exchange department of Bank of India has a bid quote on Indian rupees (Rs) of Rs.43.21/\$. If the bank typically tries to earn a bid-ask spread of 0.5 percent on these foreign exchange transactions, what will the ask rate be? (Round intermediate calculations to 3 decimal places, e.g. 15.257 and final answer to 2 decimal places, e.g. 15.25.) Alcor Pharma just received revenues of $3,165,300 in Australian dollars (A\$). Management has the following exchange rates: A$1.5490/f and $1.5906/f. What is the U.S. dollar value of the company's revenues? (Round intermediate calculation to 4 decimal places, e.g. 15.2578 and final answer to the nearest whole dollar, e.g. 5,275.) Tricolor Industries has purchased equipment from a Brazilian firm for a total cost of 272,500 Brazilian reals. The firm hass to pay in 30 days. Citibank has given the firm a 30-day forward quote of $0.4723/real. Assume that on the day the payment is due, the spot rate is $0.4917/ real. How much would Tricolor save by hedging with a forward contract? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.)
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