Exchange exposure does jones face for each foreign currency

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Reference no: EM131851982

Based on the material in the course and other research which you conduct, answer the 6 questions following the data on Jones Company. If you use additional sources of information from outside the course, be sure to identify those sources. BE SURE TO SHOW AND LABEL ALL OF YOUR CALCULATIONS. Jones Company is a U.S. firm preparing its financial plan for the upcoming year. It has no foreign subsidiaries, but the majority of its sales are from exports to Australia, Canada, Argentina and Taiwan. Estimated foreign cash inflows to be received from exports and foreign cash outflows to be paid for imports over the next year are shown below: Currency Total Inflow Total Outflow Australia dollars (A$) A$33,000,000 A$3,000,000 Canada dollars (C$) C$6,000,000 C$2,000,000 Argentina pesos (AP) AP12,000,000 AP11,000,000 Taiwan dollars (T$) T$5,000,000 T$9,000,000 Today’s spot rates and one-year forward rates in US$ are as follows: Currency Spot Rate One-Year Forward Rate A$ $ .91 $ .94 C$ .61 .60 AP .19 .16 T$ .66 .65 1. Based on the data shown, What net foreign exchange exposure does Jones face for each foreign currency, stated in dollars?

Reference no: EM131851982

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