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Finance 1. What is the exchange rate between the Swiss Franc (CHF) and the dolla

ID: 2616637 • Letter: F

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? =

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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?

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

Explanation / Answer

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.

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