PLEASE ANSWER ALL QUESTIONS!!!
Spot and forward rates
Anderson Australian Imports has agreed to purchase 15,000 cases of Australian beer for 5 million Australian dollars at today's spot rate. The firm's financial manager, Linda Wilson, has noted the following current spot and forward rates:
U.S. Dollar/Australian
Dollar Australian Dollar/U.S.
Dollar Spot 1.0759 0.9295 30-day forward 1.0718 0.9330 90-day forward 1.0631 0.9406 180-day forward 0.9276 1.0781
On the same day, Wilson agrees to purchase 15,000 more cases of beer in 3 months at the same price of 5 million Australian dollars.
What is the price of the beer in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent.
$
What is the cost in U.S. dollars of the second 15,000 cases if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate? Round your answer to the nearest cent.
$
If the exchange rate for the Australian dollar is 0.9123 to $1 in 90 days, how much will Wilson have to pay for the beer (in U.S. dollars)? Round your answer to the nearest cent.
$
PLEASE ANSWER ALL QUESTIONS!!!
Spot and forward rates
Anderson Australian Imports has agreed to purchase 15,000 cases of Australian beer for 5 million Australian dollars at today's spot rate. The firm's financial manager, Linda Wilson, has noted the following current spot and forward rates:
U.S. Dollar/Australian Dollar | Australian Dollar/U.S. Dollar | |
Spot | 1.0759 | 0.9295 |
30-day forward | 1.0718 | 0.9330 |
90-day forward | 1.0631 | 0.9406 |
180-day forward | 0.9276 | 1.0781 |
On the same day, Wilson agrees to purchase 15,000 more cases of beer in 3 months at the same price of 5 million Australian dollars.
What is the price of the beer in U.S. dollars if it is purchased at today's spot rate? Round your answer to the nearest cent.
$
What is the cost in U.S. dollars of the second 15,000 cases if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate? Round your answer to the nearest cent.
$
If the exchange rate for the Australian dollar is 0.9123 to $1 in 90 days, how much will Wilson have to pay for the beer (in U.S. dollars)? Round your answer to the nearest cent.
$