best day would be 4/25 as the no. of pounds will be = 1*200/1.6674 = 119.9472
worst day would be 4/7 as the no. of pounds will be = 1*200/1.961 = 101.9888
The difference in pounds = 119.9472 - 101.9888 = 17.9584
1.3 The following table lists foreign exchange rates between U.S. dollars and British pounds during April...
The table lists foreign exchange rates for May 29, 2015. On that day, how many dollars would be required to purchase 1,500 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Round your answers to the nearest cent. Sample Exchange Rates: Friday, May 29, 2015 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2)...
The table lists foreign exchange rates for August 25, 2017. On that day, how many dollars would be required to purchase 1,100 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Use the direct quotation for your calculations. Round your answers to the nearest cent. Sample Exchange Rates: Friday, August 25, 2017 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units...
1. Exchange Rate: Suppose the direct foreign exchange rates in U.S. dollars are: 1 British pound = $1.60 1 Canadian dollar = $0.74 Required: a. What are the indirect exchange rates for the British pound and the Canadian dollar? b. How many pound must a British company pay to buy goods costing $8,000 from the U.S. company? c. How many U.S. dollars must be paid for a purchase costing 4,000 Canadian dollars? 2. Changes in Exchange Rates: Upon arrival at...
In July, the one year interest rate is 12.63% on British pounds and 9.13% on U.S. dollars. The current exchange rate is USD1.63/GBP. Suppose a change in expectations regarding future U.S. inflation causes the expected future spot rate to decline to $1.49/GBP. Let's assume that the British interest rate stayed at 12.63% because there has been no change in expectations of British inflation. What would the U.S. interest rate expected to be?
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $2.50 million CD at 4 percent and is planning to fund a loan in British pounds at 7 percent for a 3 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.440/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S....
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $2.50 million CD at 4 percent and is planning to fund a loan in British pounds at 7 percent for a 3 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.440/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S....
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $2.50 million CD at 4 percent and is planning to fund a loan in British pounds at 7 percent for a 3 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.440/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S....
Grant, Inc., is a well-known U.S. firm that needs to borrow 10 million British pounds to support a new business in the United Kingdom. However, it cannot obtain financing from British banks because it is not yet established within the United Kingdom. It decides to issue dollar-denominated debt (at par value) in the U.S., for which it will pay an annual coupon rate of 10%. It then will convert the dollar proceeds from the debt issue into British pounds at...
4) Assume that Smith Corporation will receive 100,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.65, a 90-day expiration date, and a premium of $.03. A put option exists on British pounds, with an exercise price of $1.61, a 90-day expiration date, and a premium of $.02. Determine the amount of dollars it will receive, including the amount paid for the option premium if it purchases and exercises an option....
The table below shows the nominal exchange rates (as of 25 February 2020) between the Swedish krona (SEK) and the US dollar (USD) and the British pound (GBP), respectively. Foreign currency USD GBP SEK per foreign currency 10.45 13.46 a) Express the nominal exchange rates for SEK as foreign currency per SEK? (2p) b) What is the nominal exchange rate between USD and GBP, expressed as USD per GBP? (2p) c) Suppose that a representative basket of goods and services...