Makola Forex Bureau quotes bid-ask rates for the Nigerian naira against the Ghana cedi as #74.58/GhC...
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Makola Forex Bureau quotes bid-ask rates for the Nigerian naira against the Ghana cedi as #74.58/GhC - #76.45/GhC. Manu is a trader at Okaishie that has negotiated a deal for the supply of #1,000,000 worth of goods from Nigeria for sale in Ghana. In anticipation of this order of goods from Nigerian, Manu buys #1,000,000 with cedis from Makola Forex Bureau. After the purchase of the naira, Manu is told by the Nigerian supplier that the deal for the supply of the goods is off. Manu returns to Makola Forex Bureau to sell back the naira for cedis (assume that the quoted exchange rate had not changed). Determine how much Manu would receive in second transaction where Manu sells the #1,000,000 for cedis, and hence how much Manu loses? Makola Forex Bureau quotes bid-ask rates for the Nigerian naira against the Ghana cedi as #74.58/GhC - #76.45/GhC. Manu is a trader at Okaishie that has negotiated a deal for the supply of #1,000,000 worth of goods from Nigeria for sale in Ghana. In anticipation of this order of goods from Nigerian, Manu buys #1,000,000 with cedis from Makola Forex Bureau. After the purchase of the naira, Manu is told by the Nigerian supplier that the deal for the supply of the goods is off. Manu returns to Makola Forex Bureau to sell back the naira for cedis (assume that the quoted exchange rate had not changed). Determine how much Manu would receive in second transaction where Manu sells the #1,000,000 for cedis, and hence how much Manu loses?
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In the first transaction Manu will sell Ghana Cedi and ... View the full answer
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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