ust/e Fc= fori gn cAPeney USt/F Fuss Exchange Rates of Major Currencies U.S. S Equivalent U.S.sT Equivalent Currency per U.S. $ Currency per U.S. S Country/Currency Country/Currency 10.3029 13198 0.0971 Mexico (peso) 3.0130 0.3319 0.9556 Argentina (peso) Australian (dollar) 0.7577 New Zealand (dollar) 10465 5.1151 0.1955 Norway (krone) Pakistan (rupee) 0.3770 2.6525 Bahrain (dinar) 71.276 0.01403 1.6100 0.6211 Brazil (real) 2.8043 0.3566 Peru (new sol) 1.0108 0.9893 Canada (dollar) 45475 0.0220 Philippines (peso) Poland (zlory) 1.0113 0.9888 1-mos forward 0.4804 2.0816 1.0119 0.9882 3-mos forward 2.2511 0.4442 Romania (leu) 1.0129 0.9873 6-mos forward 23.436 0.04267 Russia (ruble) 502.77 0.001989 Chile (peso) 3.7509 0.2666 Saudi Arabia (riyal) 6.8599 0.1458 China (yuan) 1.3587 0.7360 Singapore (dollar) 1729.51 0.0005782 Colombia (peso) 0.05196 19.246 14.872 Slovak Rep (koruna) 0,06724 Czech Rep. (koruna) Denmark (krone) 7.7459 0.1291 0.2109 South Africa (rand) 4.7416 South Korea (won) 999 20 0.0010008 1 Ecuador U.S. (dollar) 6.0096 Sweden (krona) 0.1664 0.1870 5.3476 : (d) 0.9719 1.0289 15737 0.6354 Switzerland (franc) Euro area (eura) 1.0286 7.8021 1-mos forward 0.9722 Hong Kong (doilar) 0.1282 Hungary (forint) India (rupee) 3-mos forward 1.0231 0.006794 147.19 0.9727 43.0108 6-mos forward 0.02325 0.9735 1.0272 0.03290 0.02975 9174 Taiwan (dollar) Thailand (baht) 30.395 Indonesia (rupiah) 0.0001090 Israel (shekel) 0.3109 3.2165 33.613 Japan (yen) 106 81 0.009362 Turkey (lira) 12245 0.8166 U.A.E. (dirham) U.K. (pound) 1-mos forward 0.009379 106.62 0.2723 3.6724 3-mos forward 0.009412 106.25 1.9815 0.5047 6-mos forward 0.009465 105.65 1-mos forward 1.9769 0.5058 Jordan (dinar) 0.7073 14139 3-mos forward 1.9675 0.5083 Kenya (shilling) 0.01505 66.450 6-mos forward 1.9547 0.5116 Kawait (dinar) 3.7702 0.2652 Uruguay (peso) Venezuela (b. fuerte) Vietnam (dong) 0.05190 19.27 Lebanoa (pound) Malaysia (ringgit) 0.0006634 1507.39 0.46628742 2.1446 0.3082 3.2446 0.00006 16850 Source: Wall Street Journal (www.wsjcom), July 9, 2008. I 7. Caterpillar (CAT) of the U.S. just sold an A$1 million crane to Rio Tinto of Australia (currency AS). Under the terms of the contract, the American company will receive A$1 million in 30 days. Advise Caterpillar on its strategies in dealing with this cash flow. For each strategy, explain how it works and the outcome. 8. Dong D currency in Vietnam. One hair cut costs D20,000 in Vietnam and $20 in the U.S., respectively. According to the law of one price, calculate the exchange rate in D/S