The Problem We have currently cash reserves in 10 different currencies in the amounts given in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Problem We have currently cash reserves in 10 different currencies in the amounts given in the second column of the following table (in millions). Initial Position Desired Position 70 20 8 3 15 7 2 1,500 35 18 EUR USD AUD GBP NZD CAD CHF JPY HKD SGD Currency Conversion 60 25 6 2 20 8 3 1,800 40 13 Our objective is to convert these amounts in order to have reserves at least equal to the amounts given in the last column of the table. The second table (included in the Excel spreadsheet cur- rency_2019_data) contains the conversion rates (cross rates) as of September 1, 2019. The numbers in this table should be read as follows: to buy 1 U.S. dollar for Euro requires € 0.9082 (the element in the second row and the first column), 1 U.S. dollar costs 1.48438 Australian dollars (AUD), etc. If we want to buy 1 Euro for U.S. dollars we have to pay $ 1.0988 (the element in the EUR row and USD column), etc. Design the conversion plan to meet the desired goals and to maximize the U.S.$ value of the obtained positions. The Problem We have currently cash reserves in 10 different currencies in the amounts given in the second column of the following table (in millions). Initial Position Desired Position 70 20 8 3 15 7 2 1,500 35 18 EUR USD AUD GBP NZD CAD CHF JPY HKD SGD Currency Conversion 60 25 6 2 20 8 3 1,800 40 13 Our objective is to convert these amounts in order to have reserves at least equal to the amounts given in the last column of the table. The second table (included in the Excel spreadsheet cur- rency_2019_data) contains the conversion rates (cross rates) as of September 1, 2019. The numbers in this table should be read as follows: to buy 1 U.S. dollar for Euro requires € 0.9082 (the element in the second row and the first column), 1 U.S. dollar costs 1.48438 Australian dollars (AUD), etc. If we want to buy 1 Euro for U.S. dollars we have to pay $ 1.0988 (the element in the EUR row and USD column), etc. Design the conversion plan to meet the desired goals and to maximize the U.S.$ value of the obtained positions.
Expert Answer:
Answer rating: 100% (QA)
1 Formulate a Linear Programming Model Define decision variables Let xi represent the amount of curr... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these mathematics questions
-
The left-hand column of the following table describes each of seven ï¬nancial statements that the FASAB recommends agencies prepare. The right-hand column indicates the names of the seven...
-
Given these two exchange rates, $1 = 0.9952 Australian dollars and $1 = 0.6476, compute the cross rate between the Australian dollars and the pound. State this exchange rate in Australian dollars and...
-
In Example 1.6 we plotted the USD to 1 EUR for a 6-month time period. a. Use a time-series plot to graphically display the currency conversion from the EUR to 1 USD. The data are contained in the...
-
Consider the integral where n is an integer. Using the trigonometric identity 1 + tan 2 x = sec 2 x, show that and hence obtain the recurrence relation Use this to find (Recurrence relations of this...
-
As part of a larger systems project, Clone Bank of Clone, Colorado, wants your help in setting up a new monthly reporting form for its checking and savings account customers. The president and vice...
-
The automobile has a mass of 2 Mg and center of mass at G. Determine the towing force F required to move the car. Both the front and rear brakes are locked. Take s = 0.3. G. 30 0.3 m 0,6 m B -1 m-...
-
Consider the flat-plate heat transfer to be solved by the similarity approach. Show all the details leading to Eq. (18.15). What are the boundary conditions on \(\theta\) ? Extend your MATLAB code to...
-
Canwest Global Communications Corp. reported cash used by operating activities of $104,539,000 and revenues of $2,867,459,000 during 2009. Cash spent on plant asset additions during the year was...
-
5. One particular equation involving energy states that E = 1mv where the energy E has 2 units of joules (J), the mass m is in units of kg, and the velocity v is in units of m/s. Another energy...
-
A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be...
-
A mixture of 52.4nM analyte X and 38.9 nM standard (S) gave the relative response Ax = 0.644 and As = 1.00. A second solution containing an unknown amount of X and 742 nM standard S had areas of Ax...
-
The JeBean Company makes sales only on credit. All JeBean's customers order through the post. The business has a small accounting department, a credit department, an inventory department and a...
-
What are operating expenses? Explain the difference between selling expenses and general and administrative expenses.
-
The Anibonita Company is a retail shop with three sales departments. It also has a small accounting department, a purchasing department and a receiving department. All inventory is kept in the sales...
-
How is the accounting equation used to set up a basic accounting system for a business?
-
What is a periodic inventory system? How is a business' cost of goods sold determined under this system?
-
Assume that you are planning to buy Treasury bills. Maturity date is March 15, 2023 which means that you will be paid 100 TL on the maturity date. If you require 28% return for this T-bill, which...
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
Cypress Corporation has regular taxable income of $170,000 (assume annual gross receipts are greater than $5 million) and regular tax liability of $49,550 for 2012. The corporation also has tax...
-
Indicate whether each of the items listed below would be included (I) in or excluded (E) from gross income for the 2012 tax year. ________a. Welfare payments ________b. Commissions ________c. Hobby...
-
Indicate, in each of the following situations, the number of exemptions the taxpayers are entitled to claim on their 2012 income tax returns. Number of Exemptions a. Donna, a 20-year-old single...
-
In a large office building, there is a woman dead in her locked office, sitting at her desk. Except for the desk, chair, and contents on the desk, the office is empty and the air conditioner is...
-
How many birthdays does the average person have?
-
There are 5 different color houses, occupied by people of 5 different nationalities, who smoke 5 different cigar brands, drink 5 different types of alcohol, and have 5 different pets. The houses are...
Study smarter with the SolutionInn App