Finance Week 7 Problems Set
Question
1
Suppose the exchange rate between U.S. dollars and
Swiss francs is SF 1.3526 = $1.00, and the exchange rate between the U.S.
dollar and the euro is $1.00 = 0.9672 euros. What is the cross-rate of
Swiss francs to euros (SF/Euro)?
Enter your
answer rounded off to FOUR decimal points.
1 points
Question
2
The exchange rate is 0.957 Swiss francs per
U.S. dollar. How many U.S. dollars are needed to purchase 2,369 Swiss
francs?
Enter
your answer rounded off to two decimal points. Do not enter $ in the answer
box. For example, if your answer is $12.345 then enter as 12.35 in the answer
box.
1 points
Question
3
You just returned from a trip to Venezuela
and have 4,644 bolivares fuertes in your pocket. How many dollars will you
receive when you exchange this money if the U.S. dollar equivalent of the
bolivares fuertes is 0.1565?
Enter
your answer rounded off to two decimal points. Do not enter $ or comma in the
answer box. For example, if your answer is $12.345 then enter as 12.35 in the
answer box.
1 points
Question
4
ABC Company sells 2,362 chairs a year at an
average price per chair of $145. The carrying cost per unit is $22.51. The
company orders 225 chairs at a time and has a fixed order cost of $103.8
per order. The chairs are sold out before they are restocked. What are the
total carrying costs?
Enter
your answer rounded off to two decimal points. Do not enter comma or $ in the
answer box. For example, if your answer is 12.345 then enter as 12.35 in the
answer box.
1 points
Question
5
Suppose it takes 1.47 U.S. dollars today to purchase
one British pound today. Currency forecasters predict that the U.S. dollar
will depreciate by 19% against the pound over the next 30 days. What is
the Pound/US Dollar exchange rate in 30 days?That is, how many pounds can
1 dollar buy in 30 days?
Enter your
answer rounded off to FOUR decimal points.
1 points
Question
6
The exchange rate is 0.9314 Swiss francs
per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss
franc?
Enter
your answer rounded off to two decimal points. Do not enter $ in the answer
box. For example, if your answer is $12.345 then enter as 12.35 in the answer
box.
1 points
Question
7
Suppose it takes 1.39 U.S. dollars today to purchase
one British pound today. Currency forecasters predict that the U.S. dollar
will depreciate by 19% against the pound over the next 30 days. What is
the U.S. dollar/Pound exchange rate in 30 days?
Enter your
answer rounded off to FOUR decimal points.
1 points
Question
8
ABC Company sells 3,444 chairs a year at an
average price per chair of $181. The carrying cost per unit is $29.79. The
company orders 500 chairs at a time and has a fixed order cost of $83 per
order. The chairs are sold out before they are restocked. What is the
economic order quantity?
Enter
your answer rounded off to two decimal points. Do not enter comma in the answer
box. For example, if your answer is 12.345 then enter as 12.35 in the answer
box.
1 points
Question
9
ABC Company sells 2,324 chairs a year at an
average price per chair of $144. The carrying cost per unit is $57.9. The
company orders 402 chairs at a time and has a fixed order cost of $38 per
order. The chairs are sold out before they are restocked. How many orders
will company place if it follows the economic order quantity model?
Enter
your answer rounded off to two decimal points. Do not enter comma in the answer
box. For example, if your answer is 12.345 then enter as 12.35 in the answer
box.
1 points
Question
10
ABC Company sells 3,965 chairs a year at an
average price per chair of $178. The carrying cost per unit is $15.13. The
company orders 236 chairs at a time and has a fixed order cost of $94.8
per order. The chairs are sold out before they are restocked. What are the
total shortage costs?
Enter
your answer rounded off to two decimal points. Do not enter comma or $ in the
answer box. For example, if your answer is 12.345 then enter as 12.35 in the
answer box.
1 points
Question
11
Suppose one U.S. dollar can purchase 151 yen today. If
the yen depreciates by 7% tomorrow, how many yen could one U.S. dollar buy
tomorrow?
Enter your
answer rounded off to two decimal points. For example, if your answer is 12.345
then enter as 12.35 in the answer box.
1 points
Question
12
Suppose the exchange rate between U.S. dollars and
Swiss francs is SF 1.0416 = $1.00, and the exchange rate between the U.S.
dollar and the euro is $1.00 = 0.9155 euros. What is the cross-rate of
euros to Swiss francs (Euro/SF)?
Enter your
answer rounded off to FOUR decimal points.
1 points
Question
13
Your friend from Germany has decided to
come and visit you in the United States. You estimate the cost of her trip
at $7,755. What is the cost to her in euros if the U.S. dollar equivalent
of the euro is 1.3203?
1 points
Question
14
You can exchange $1 for either C$1.209 or
¥114.09. What is the cross rate between the Japanese yen and the Canadian
dollar? That is, solve for ¥ per C$.
Enter
your answer rounded off to two decimal points.
1 points
Question
15
In
New York, you can exchange $1 for €0.8698 or £0.6758. Suppose that, in Berlin,
£1 costs €1.1981. How much profit can you earn on $31,683 using triangle
arbitrage?
Enter your
answer rounded off to two decimal points. Do not enter $ or comma in the answer
box. For example, if your answer is $12.345 then enter as 12.35 in the answer
