Question
Using the table below, answer the following parts. a) How many Swiss Francs can you get with 1,000 US Dollars? b) You have decided to
Using the table below, answer the following parts.
a) How many Swiss Francs can you get with 1,000 US Dollars? b) You have decided to set up an export business. You will be exporting handmade furniture to Great Britain. The importer has agreed to pay you in British Pounds. For your first shipment of beds, the importer will pay you British Pounds 50,000. How much will you make in US dollars? c) Referring to Part B, suppose you are not paid immediately. Instead, the importer agrees to pay in 60 days. What can you do to hedge your position if you are not paid for 60 days?
d) Referring to part b, how much will it cost you if you hedge? e) You have 1,000 Euros. How many Indian Rupees will this buy?? Currency Table:
? $ 102.28 ? SF 9729 SF 1,027.85 ? SF 972.909
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