Foreign Exchange Rates

tanyabrown37 · #1 Mar 27, 2008, 04:35 PM

You are assigned the duty of ensuring the availability of 100,000 yen for the payment that is scheduled for next month.
Considering that your company possesses only U.S. dollars, identify the spot and forward exchange rates. What are
the factors that affect your decision of utilizing spot versus forward exchange rates? Which one would you choose?
How many dollars do you have to spend to acquire the amount of yen required?

Credendovidis · Mar 27, 2008, 05:05 PM

Quote:

Originally Posted by tanyabrown37

You are assigned the duty of ensuring the availability of 100,000 yen for the payment that is scheduled for next month.
Considering that your company possesses only U.S. dollars, identify the spot and forward exchange rates. What are
the factors that affect your decision of utilizing spot versus forward exchange rates? Which one would you choose?
How many dollars do you have to spend to acquire the amount of yen required?

Better repost this at the homework site.
Exchange rate dollar - yen is around 1 US$ = 100 Yen



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