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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