# FIN18.1 - (£100)(\$1.4729/£1) = \$147.29 b. You would still...

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Using the quotes from the table, we get: a. \$100(Z3.3807/\$1) = Z338.07 b. \$1.3266 c. €5,000,000(\$1.3266/€) = \$6,633,000 Alternatively the question can be answered as: €5,000,000 / (\$.7538/€) = \$6,633,059 The difference is due to rounding in the exchange rate quote. d. Singapore dollar e. Mexican peso f. (SF1.1426/\$)(\$1.3266/€) = 1.5158 SF/€ This is a cross rate. g. Most valuable: Kuwaiti dinar = \$3.4399 Least valuable: Vietnamese dong = \$0.00005634 2. a. You would prefer £100, since:
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Unformatted text preview: (£100)(\$1.4729/£1) = \$147.29 b. You would still prefer £100. Using the \$/£ exchange rate and the C\$/\$ exchange rate to find the amount of Canadian dollars £100 will buy, we get: (£100)(\$1.4729/£1)(C\$1.2381/\$1) = C\$182.36 c. Using the quotes in the book to find the C\$/£ cross rate, we find: (C\$1.2381/\$1)(\$1.4729/£1) = C\$1.8236/£1 The £/C\$ exchange rate is the inverse of the C\$/£ exchange rate, so: £1/C\$1.8236 = £0.5484/C\$...
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## This note was uploaded on 01/23/2012 for the course MGT 111 taught by Professor Unknown during the Spring '11 term at Washington State University .

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