Question

Suppose Ford receives quotes of $0.009369-71 for the yen and $.03675-6 for the Taiwan dollar (NT$)....

Suppose Ford receives quotes of $0.009369-71 for the yen and $.03675-6 for the Taiwan dollar (NT$).

(a)

How many $ will Ford receive from the sale of ¥50 million?

(b)

What is the $ cost to Ford of buying ¥1 billion?

(c)

How many NT$ will Ford receive for $500,000?

(d)

How many ¥ will Ford receive for NT$200 million?

(e)

What is the yen cost to Ford of buying NT$80 million?

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Homework Answers

Answer #1

1 Yen = $0.009369-0.009371

a)Buying price of Yen = $0.009369

Hence, dollars received from sales of Yen 50 million = 50,000,000*0.009369

= $468,450

b)Cost of buying Yen 1,000,000,000 = 1,000,000,000*0.009371

= $9,371,000

c)1 NT$ = $0.03675-0.03676

NT$ received = 500,000/0.03676

= NT$ 13,601,741.02

d)Dollar received = 200,000,000*0.03675 = $7,350,000

yen received = 7,350,000/0.009371 = Yen 784,334,649.45

e)Dollar required = 80,000,000*0.03676 = $2,940,800

Yen required = 2,940,800/0.009369 = Yen 313,886,220.51

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