User Account

All Pages

What is the cost of the bags in us dollars

Assignment Help Finance Basics
Reference no: EM132661813

Problem:

Y Imports has agreed to purchase 11,000 bags for 500,000 British pounds at today's spot rate. The current and forward spot rates are as follows:

US dollar/British pound British pound to US dollar

Spot 1.5110 0.5128

30-day forward 1.5540 0.5056

90-day forward 1.5460 0.5075

180-day forward 1.5400 0.5088

On the same day, Y agrees to purchase 11,500 more bags in 3 months at the same price of 500,000 British pounds.

a) What is the cost of the bags in US dollars, if purchased at today's spot rate ?

b) What is the cost in dollars of the second 11,500 order if payment is made in 90 days and the spot rate at the time equals today's 90-day forward rate?

c) If the exchange rate is 0.55 British pounds per dollar in 90 days, how much will Y have to pay (in dollars) for the bags?

Reference no: EM132661813

Questions Cloud

What is Rafael recognized gain or loss : Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. What is Rafael recognized gain or loss
What is the estimated value per share of the stock : The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 11.5%.
Write analysis connecting the three theories of morality : Explain how the theories align or do not align with your cultural identity. Include how cultural identity impacts social responsibility.
SHR043-6 Integrated Management Project Assignment : SHR043-6 Integrated Management Project Assignment Help and Solution, Majan University College - Assessment Writing Service
What is the cost of the bags in us dollars : What is the cost of the bags in US dollars, if purchased at today's spot rate ?
What are the tax consequences to Allie : Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land. What are the tax consequences to Allie
What dream scape is like : What your dream scape is like, maybe some dreams you have had or insight into past dreams since the discussion. Also how this information can be useful to you.
What gain is realized on the transaction : Rhonda owns 50% of the stock of Peach Corporation. What gain is realized on the transaction? How much of the gain will be recognized
Describe the social problem or policy would like to change : Is continued policy practice/advocacy needed to make a long-term impact? Why or why not? Describe the social problem or policy you would like to change

Reviews

Write a Review

Finance Basics Questions & Answers

  Retirement account per year

How much will he need to save in his retirement account per year to achieve these objectives?

  What is after tax proceeds from the sale

The computer is sold for $10,000. What is after tax proceeds from the sale of this computer if the marginal tax rate is 35 percent?

  What is the importance of a retirement

What is the importance of a retirement? How can it benefit the employee?

  A secret savings account paying

You have been diligently saving to buy a boat. For the last 10 years, you have been putting $50 per month into a secret savings account paying .5% interest per year.

  Confidence interval for the population mean

We created a 95% confidence interval for the population mean, µ, ( 29.8, 73 ). What is the value of x_bar (i.e., the sample mean)? Use two decimal places.

  What constitutional amendment issue number does joe have

What Constitutional Amendment Issue Number Does Joe Have? What Part of that Constitutional Amendment Issue Number Does Joe Have?

  Deposit interest rate in order to maximize total profits

Management anticipates being able to invest any new deposits raised in loans yielding 7 percent.

  What was the par value and number of shares

ABC Corporation offered a four-for-one stock split. The number of outstanding shares before the split was 15,000 and the par value was $20 per share.

  What are the underlying implication to corporate finance

How does market efficacy and behavioral finance impact corporate finance? What are the underlying implication to corporate finance?

  The exercise price on one of the first link investment

the exercise price on one of the first link investment corporations call option us 15 its exercise value is 22 and its

  Calculate how much you would have in a savings account 5

intrayear compounding. calculate how much you would have in a savings account 5 years from now if you invest 1000

  Which one of the following is an example of systematic risk

Which one of the following is an example of systematic risk?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd