An Australian manufacturing company is exporting goods to Thailand. In order to ascertain the firm's competitiveness...
Fantastic news! We've Found the answer you've been seeking!
Question:
![](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2023/03/641ab1c9e766f_1679471048495.jpg)
Transcribed Image Text:
An Australian manufacturing company is exporting goods to Thailand. In order to ascertain the firm's competitiveness in the foreign market, it needs to calculate the THB/AUD cross- rate. A FX dealer quotes the following rates: USD/AUD USD/THB Calculate the THB/AUD cross rate. b) A Malaysian importer has entered into a contract under which it will require payment in AUD in one month. The company is concerned at its exposure to foreign exchange risk and decides to enter into a forward exchange contract with its bank. Given the following data, calculate the forward rate offered by the bank. Both countries use a 360-day year; assume 30-day contract. 1.3112-32 4.2300-50 MYR/AUD 1.6117-62 One-month Malaysian interest rate: 5.21% p.a. One-month Australian interest rate: 3.78% p.a. An Australian manufacturing company is exporting goods to Thailand. In order to ascertain the firm's competitiveness in the foreign market, it needs to calculate the THB/AUD cross- rate. A FX dealer quotes the following rates: USD/AUD USD/THB Calculate the THB/AUD cross rate. b) A Malaysian importer has entered into a contract under which it will require payment in AUD in one month. The company is concerned at its exposure to foreign exchange risk and decides to enter into a forward exchange contract with its bank. Given the following data, calculate the forward rate offered by the bank. Both countries use a 360-day year; assume 30-day contract. 1.3112-32 4.2300-50 MYR/AUD 1.6117-62 One-month Malaysian interest rate: 5.21% p.a. One-month Australian interest rate: 3.78% p.a.
Expert Answer:
Answer rating: 100% (QA)
a To calculate the THBAUD cross rate we need to first convert USDTHB and USDAUD quotes to ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Apply the product rule for exponents, if possible. y 4 y 5 y 6
-
The New Jersey concrete barrier is commonly used during highway construction. Determine the location yc of its centroid. Given: a = 4 in b = 12 in c = 6 in d = 24 in 1 = 75 deg 2 = 55 deg
-
Come up with a list of 20 virtues not mentioned in Section 2.10.
-
What are the reasons for holding inventories? Are these reasons different from the reasons for holding cash?
-
The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2007: Sales $800,000, Freight-out $12,000, Sales Returns and...
-
Write out the sample s Answer How to enter your ans
-
On January 1, 2010, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 an retained earnings of...
-
In this article, How is empirical (data driven) information for public consumption applied? Is there a political bias? Are there limitations to the research?...
-
Ever heard of Art Buchwald? He was a famous writer for the Los Angeles Times and is credited writing certain movie scripts. One script was for the movie "Coming to America" for which he won a lawsuit...
-
You are asked to review amounts paid to employees at a state agency. You do not have sufficient time to review all the employees listed below in detail; but you do have time to look at supporting...
-
The school district where the Bradleys live needs $1,310,000 from property tax revenues to meet the budget. The total value of assessed property in the district is $120,000,000. What is the tax rate?...
-
A breach of contract occurs on January 2, 2022. The contract did not include an agreed upon interest rate. The Statement of Claim was filed April 15, 2022. The claim was for $80,000. There was a...
-
What is the standard deviation on this stock given the following information and noting that the expected return on the stock is 5.4%? Economic State probability stock return boom 0.3 12% normal 0.5...
-
Exercise 1. Consider a company that borrows ?25 million by selling 250,000 individual bonds. A new issue consists of bonds with face value of ?100, due in 10 years and a coupon of 8%. What is the ...
-
What are current assets and current liabilities? How are they different from non-current assets and non-current liabilities?
-
Will Currency Swaps Result in Low Financing Costs? Point Yes. Currency swaps have created greater participation by firms that need to exchange their currencies in the future. Thus, firms that finance...
-
Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $.15 to $.14 in 10 days. The following interbank lending and borrowing rates exist: Assume that...
-
Assume the following information: Spot rate of Canadian dollar ...........= $.80 90-day forward rate of Canadian dollar ........= $.79 90-day Canadian interest rate ............= 4% 90-day U.S....
-
What factors should be taken into account when designing a system of accounting for inflation?
-
Historical cost accounting is the worst possible accounting convention, until one considers the alternatives. Discuss this statement in relation to CPP, CCA and NRVA.
-
Discuss the effect on setting performance bonuses for staff if financial performance for a period contains both realised and unrealised gains/losses.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App