The writer is very fast, professional and responded to the review request fast also. Thank you.
Y Imports has agreed to purchase 11,000 bags for 500,000 British pounds at today’s spot rate. The current and forward spot rates are as follows:
US dollar/British pound British pound to US dollar
Spot 1.5110 0.5128
30-day forward 1.5540 0.5056
90-day forward 1.5460 0.5075
180-day forward 1.5400 0.5088
On the same day, Y agrees to purchase 11,500 more bags in 3 months at the same price of 500,000 British pounds.
a. What is the cost of the bags in US dollars, if purchased at today’s spot rate ?
b. What is the cost in dollars of the second 11,500 order if payment is made in 90 days and the spot rate at the time equals today’s 90-day forward rate ?
c. If the exchange rate is 0.55 British pounds per dollar in 90 days, how much will Y have to pay (in dollars) for the bags ?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more