4. If your company hold these 4 positions until 2011-01-01 CAD 1,000,000 JPY 100,000,000...

4. If your company hold these 4 positions until 2011-01-01

CAD	1,000,000
JPY	100,000,000
MXN	5,000,000
THB	100,000,000

DATE	CAD1	JPY1	MXN1	THB1	SLR1	EUR1	CNY1	GBP1	INR1	SGD1
2011-01-01	0.9939	0.0121	0.0825	0.0327	0.0090	1.3371	0.1516	1.5782	0.0220	0.7774

Solutions

Expert Solution

There are Two Types of Quotation in FOreifn Exchange Market:

1. American Quotation : Number of US Dollar Per Unit of a Foreign Currency (Or say Direct Quote)

USD / Per CAD , USD / per THB

2. European Quotation : Number of Units of Foreign Currenct per US Dollar (Or say Indirect Quote)

CAD / Per USD , THB / Per USD

Conversion of Foreign Currency in US Dollar (The Position may be either Payable or Receivable)

Units of CAD	1,000,000
Type of Quote	Indirect Quote
Rate of Exchange	0.9939 CAD / Per USD

Units of USD	$ 1,006,137.44

Units of USD : Units of CAD / Rate of Exchange
1,000,000 / 0.9939
$ 1,006.137.44

2.

Units of JPY	100,000,000
Type of Quote	Direct Quote
Rate of Exchange	0.0121 USD / Per JPY

Units of USD	$ 1,210,000

Units of USD : Units of JPY / Rate of Exchange
100,000,000* 0.0121
$ 1,210,000

Units of MXN	5,000,000
Type of Quote	Direct Quote
Rate of Exchange	0.0825 USD / Per MXN

Units of USD	$ 412,500

Units of USD : Units of MXN / Rate of Exchange
5,000,000* 0.0825
$ 412,500

Units of THB	100,000,000
Type of Quote	Direct Quote
Rate of Exchange	0.0327 USD / Per THB

Units of USD	$ 3,270,000

Units of USD : Units of THB / Rate of Exchange
100,000,000* 0.0327
$ 3,270,000

ekkarill92 answered 1 year ago

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