What is the dollar amount the american firm is expected

Assignment Help Financial Management

Reference no: EM132061490

1. If an item costs 4 Euros in Germany, assuming purchasing power parity with current exchange rates of $1.3135/€, what is the price of the item in the U.S.?

2. An American firm sells farm equipment to a British company for 250,000 to be paid in 180 days. The current exchange rate is $1.98/?. The exporter hedges its exchange rate risk by selling 250,000 forward 180 days at the prevailing 180-day forward exchange rate of $2.01/?. What is the dollar amount the American firm is expected to receive in 180 days?

Reference no: EM132061490

Questions Cloud

What are expected inflation rates : what are expected inflation rates in Taiwan and in the U.S.?

Initial dollar investment from holding nardasausau stock : what would be his realized return on his initial dollar investment from holding Nardasausau stock?

Record sweetwater rent payment at december : Record Sweetwater's rent payment at December 31, 2020 (the fifth rent payment) and December 31, 2030 (the 15th rent payment)

What motivates the leader behavior : Focuses on leadership behavior and motivation, and this discussion board serves as an opportunity to tie-in the previous unit (trait theory) with leadership.

What is the dollar amount the american firm is expected : What is the dollar amount the American firm is expected to receive in 180 days?

What amount can the corporation deduct as salary expense : His salary for the year is $1,320,000, which is the sixth-highest salary at Branson. What amount can the corporation deduct as salary expense

Differs from us current account surplus and deficit : What is U.S. financial account surplus/deficit and how it differs from U.S. current account surplus/deficit?

Explain the history of collective bargaining : Please prepare a research paper that explains the history of collective bargaining from past to present and some of the current challenges.

How much usd appreciates and depreciates : Canadian dollar costs $0.84 today and traded for $0.86 last year, then how much USD appreciates/depreciates?

User Account

All Pages