Question
In: Accounting
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)
1.
| 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
3.
| 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
4.
| 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
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