Question

The following are quotes from a currency dealer in the New York currency market:

Currency	Spot quote
Australian dollar (AUD/USD)	0.7832 - 0.7834
Brazilian real (USD/BRL)	3.2335 - 3.2365
British pound (GBP/USD)	1.3507 - 1.3509
Canadian dollar (USD/CAD)	1.2555 - 1.2557
Euro (EUR/USD)	1.1948 - 1.1949
Japanese yen (USD/JPY)	111.44 - 111.45
Mexican peso (USD/MXP)	19.3653 - 19.3718
New Zealand dollar (NZD/USD)	0.7181 - 0.7184
Thai baht (USD/THB)	32.1240 - 32.1430
Egyptian pound (USD/EGP)	17.6860 - 17.8460
South Korean won (USD/KRW)	1067.53 - 1069.53
Swiss franc (USD/CHF)	0.9789 - 0.9791

6. Using the quotes provided above, how many US dollars would it cost to purchase one million

a. euros?

b. New Zealand dollars?

c. Mexican pesos?

e. Egyptian pounds?

Answer 1

		Currency
		Spot quote	Bid rate (Selling rate for customer)	Ask rate (Buying rate for the customer)
		Australian dollar (AUD/USD)	0.7832	0.7834
		Brazilian real (USD/BRL)	3.2335	3.2365
		British pound (GBP/USD)	1.3507	1.3509
		Canadian dollar (USD/CAD)	1.2555	1.2557
		Euro (EUR/USD)	1.1948	1.1949
		Japanese yen (USD/JPY)	111.44	111.45
		Mexican peso (USD/MXP)	19.3653	19.3718
		New Zealand dollar (NZD/USD)	0.7181	0.7184
		Thai baht (USD/THB)	32.124	32.143
		Egyptian pound (USD/EGP)	17.686	17.846
		South Korean won (USD/KRW)	1067.53	1069.53
		Swiss franc (USD/CHF)	0.9789	0.9791
	I)	Dollars required for Purchasing one million Euros
		Buying rate for the customer in New York is $1.1949 per 1 Euro
		SO, for Buying One million Euros = One million euros*$1.1949
		€                                    10,00,000.00	1.1949 Euro/$
		$                                    11,94,900.00	Dollars Required for million Euros
	ii)	Dollars required for Purchasing one million Newzland dollars
		Buying rate for the cutomer in newyork is $0.7184 per 1 Newzland dollar
		SO for Buying One million Newzland dollar = One million Newzland dollar*$0.7184
		NZD 1000000	0.7184 NZD/$
		$                                      7,18,400.00	Dollars Required for million Newzland dollar
	iii)	Dollars required for Purchasing one million Pesos
		We have the Quote mentioned as Direct quote
		So we have to conver it into Indirect quote as per unit of USD
		We need Ask rate of Pesos =	1/Bid rate of Pesos
			1/19.3653
		Ask rate of Pesos ( MXP/USD)	0.051639
		Buying rate for the cutomer in newyork is $0.051639 per 1 Pesos
		SO for Buying One million Pesos = One million Pesos*$0.051639
		MXP 1000000	0.051639 MXP/$
		$                                          51,639.00	Dollars Required for million Newzland dollar
	iv)	Dollars required for Purchasing one million Egyptian pounds
		We have the Quote mentioned as Direct quote
		So we have to conver it into Indirect quote as per unit of USD
		We need Ask rate of Egyptian pounds=	1/Bid rate of Egyptian pounds
			1/17.6860
		Ask rate of Egyptian pounds( EGP/USD)	0.056542
		Buying rate for the customer in New York is $0.051639 per 1 Egyptian pound
		SO, for Buying One million Egyptian pounds = One million Egyptian pounds*$0.056542
		EGP 1000000	0.056542 EGP/$
		$                                          56,542.00	Dollars Required for million Newzland dollar