Texts: Subject: International Finance
Question 6:
Suppose a U.S. importer purchases an Italian product today but will not pay for it for 90 days. The cost of the product today is 35,000 euros. The spot exchange rate today is 0.6233 euros per dollar. The importer creates a forward-market hedge. The 90-day forward rate is 0.6100 euros per dollar. The amount the U.S. importer will pay in 90 days is...?
Question 7:
A plc receives $100,000 from a customer in the US. The exchange rate is $1.6250 - $1.6310 per pound. How many pounds will A plc receive?
Question 8:
Ali is a company based in India, where the currency is the Indian Rupee (INR). They owe money to a supplier in Ruritania, where the currency is Ruritanian Dollars (R$). The amount owing is R$ 240,000. The current exchange rate is INR 8.6380 - 9.2530 per R$. How many Indian Rupees will Ali have to pay?