Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 20.1. You have just placed an order for 30,000 motherboards at a cost to you of 124.60 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $98 each. Calculate your profit if the exchange rate goes up or down by 10 percent over the next 90 days. What is the break-even exchange rate? What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar?

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Currency USD equiv per US dollar USD equiv Currency per US dollar Americas Americas Argentina peso 0.0251 39.823 Europe Brazil real 0.2649 3.7756 Bulgaria lev 0.57958 1.725 Canada dollar 0.7517 1.3303 Croatia kuna 0.1526 6.554 Chile peso 0.001515 660.2 Czech Rep. koruna 0.04423 22.607 Ecuador US dollar 1 1 Denmark krone 0.1520 6.5799 Mexico peso 0.0518 19.2971 Euro area euro 1.1340 0.8819 Uruguay peso Hungary forint 0.0035917 278.42 0.03059 32.69 Iceland krona 0.008307 120.38 Asia-Pacific Norway krone 0.1157 8.6448 Australian dollar 0.7093 1.4098 Poland zloty 0.2638 3.7915 1-mos forward 0.7058 1.4168 Romania leu 0.2393 4.178 3-mos forward 0.6996 1.4294 Russia ruble 0.01521 65.741 6-mos forward 0.7073 1.4138 Sweden krona 0.1071 9.3371 Switzerland franc 1.0011 0.9989 China yuan 0.1491 6.7071 1-mos forward 1.0042 0.9958 Hong Kong dollar 0.1274 7.8492 3-mos forward 1.0097 0.9904 India rupee 0.0141 70.9 6-mos forward 1.0185 0.9818 Indonesia rupiah 0.0000708 14130 Turkey lira Ukraine hryvnia 0.186 5.3776 Japan yen 0.008949 111.74 0.0373 26.83 1-mos forward 0.009229 111.77 U.K. pound 1.3178 0.7588 3-mos forward 0.009749 111.82 1-mos forward 1.3157 0.7601 6-mos forward 0.009109 111.90 3-mos forward 1.3118 0.7623 Kazakhstan tenge 0.00266 376.22 6-mos forward 1.3058 0.7658 Macau pataca 0.1238099 8.077 Malaysia ringgit 0.2452 4.079 Middle East/Africa New Zealand dollar 0.6824 1.4654 Bahrain dinar 2.6523 0.377 Pakistan rupee 0.00716 139.76 Egypt pound 0.0571 17.522 Philippines peso 0.0193 51.811 Israel shekel 0.2758 3.6252 Singapore dollar 0.7383 1.3545 Kuwait dinar 3.2945 0.3035 Suth Korea won 0.0008877 1126.46 Oman sul rial 2.59737 0.39 Sri Lanka rupee 0.0055624 179.78 Taiwan dollar 0.03243 30.84 Qatar rial 0.2748 3.6387 Thailand baht 0.03139 31.86 Saudia Arabia riyal 0.2666 3.7505 Vietnam dong 0.0000431 23200 South Africa rand 0.0703 14.2209