Question

Finance

1. What is the exchange rate between the Swiss Franc (CHF) and the dollar?

2. How many South African Rands (ZAR) can you buy with $500?

3. If you purchase New Zealand Dollar (NZD) 50,000 of supplies from New Zealandhow much will this cost in US$ today?

4. In the above problem what can you do if you do not have to pay for 30 days and you wanted to hedge your position? =

______________________________

What will it cost in US$ if this is the case?

Forward Rates for US $ per New Zealand Dollar (NZD)
30 day forward	US$0.8391 / NZD
60 day forward	US$0.8302 / NZD
90 day forward	US$0.8299 / NZD

5. How many Japanese Yen (JPY) can you buy with 4,000 Russian Rubles (RUB)?

6. Is the New Zealand Dollar appreciating or depreciating in the forward market?

Answer 1

Answer 1 Exchange rate as on 19-06-2018

1 Swiss Franc (CHF) = 1.01 US Dollar

Answer 2 As per the exchange rate on 19-06-2018

1 South african rand = 0.073 US Dollar

Therefore, with $500 we can buy 6,873.52 South african rand

Answer 3

As per the exchange rate on 19-06-2018

1 New zealand Dollar = 0.69 US Dollar

For buying 50,000 New Zealand Dollars we need $34,512.51

Answer 4

If we make a forward contract for 30 days, 50,000 New Zealand Dollars will cost $41,955 after 30 days

Answer 5

As per the exchange rate on 19-06-2018

1 Japanese Yen = 0.58 Russian Ruble

Therefore, with 4000 Russian Rubles, we can buy 6909.13 Japanese Yen

Answer 6

The rate in forward market for New Zealand dollar is 0.6899 as on 19-06-2018

The trend for last one month shows that Nez Zealand Dollar is depreciating with lowest rate of 0.6883 on 23-05-2018 and 30-05-2018.