Question

The following are quotes from a currency dealer in the New York currency market:

Currency	Spot quote
Australian dollar (AUD/USD)	0.7832 - 0.7834
Brazilian real (USD/BRL)	3.2335 - 3.2365
British pound (GBP/USD)	1.3507 - 1.3509
Canadian dollar (USD/CAD)	1.2555 - 1.2557
Euro (EUR/USD)	1.1948 - 1.1949
Japanese yen (USD/JPY)	111.44 - 111.45
Mexican peso (USD/MXP)	19.3653 - 19.3718
New Zealand dollar (NZD/USD)	0.7181 - 0.7184
Thai baht (USD/THB)	32.1240 - 32.1430
Egyptian pound (USD/EGP)	17.6860 - 17.8460
South Korean won (USD/KRW)	1067.53 - 1069.53
Swiss franc (USD/CHF)	0.9789 - 0.9791

Using the quotes provided above, how many US dollars would a customer receive from this dealer in exchange for one million:

a. British pounds?                  

b. Thai baht?                          

c. Swiss francs?                      

d. New Zealand dollars?        

(In these transactions, the customer is selling foreign currency and buying US dollars.)

Answer 1

a.	US Dollar received exchange for One million British Pound
	Spot rate for One pound	=	1.3507 USD
	One million British Pound	=	1.3507 Usd*1 million
		=	1.3507 million USD
b.	US Dollar received exchange for One million Thai Baht
	Spot rate for 1$	=	32.1240 Thai Baht
	1 Thai Baht ( 1$/32.1240)		$0.03
	One million Thai Bhat	=	0.03 Usd*1 million
		=	USD 0.03 million
c.	US Dollar received exchange for One million swiss Frane
	Spot rate for CHF1	=	$0.98
	CHF 1 million	=	$0.98*1 million
		=	$0.98 million
d.	US Dollar received exchange for One million New Zealend dollar
	Spot rate for NZD1	=	$0.7181
	NZD1 million	=	$0.7181*1 million
		=	$0.7181 million