An Australian manufacturing company is exporting goods to Thailand. In order to ascertain the firm's competitiveness...

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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.

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