Spot rate-forward rate and cross rate

Assignment Help Financial Management

Reference no: EM131180306

Question 1: Spot rate: Given the Following direct qoutes calculate the equivalent indirect qoutes:

A) $.08/ mexican Pesos

B) .72 pound sterling/ Eros

c) rupees 32.50 To C$

2. Spot Rate: Suppose a bmw 745i car is priced at $60,000 in New York and 50,000 Eros in berlin. in which place is the car more expensive if the spot rate is 1.25/ Eros?

Question 2:

Dollar Cost in berlin=$

The cost of the car is higher in:

3. Forward Rate: GWC Corportation has contracted with an indian technology firm for hardware products. The payment of 10,000,000 rupees is due in 60 days. How will will the cost be in dollars if 60 days forward rate is RS 50.12/$?

4. Cross Rate: Barney Bank has offered the following exchange rate quotes: 204 japenese yen/ stelning pounds and korean on 15/ japenese yen. What is the cross rate between korean won and brish pound?

5. Cross Rate: Jensen Corportation observes the Swiss Franc(SF) in currently quoted at .8 Eros/ SF and th Sweden Krona (SK) is qouted at .125 Eros/ SK. what is the SK/SF cross rate?

Reference no: EM131180306

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