What is the price of the watches in us dollars

Assignment Help Business Management

Reference no: EM131367772

Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today's spot rate. The firm's financial manager, James Desreumaux, has noted the following current spot and forward rates:

	U.S. Dollar/Franc	Frans/U.S. Dollar
Spot	1.6590	0.6028
30-day forward	1.6540	0.6046
90-day forward	1.6460	0.6075
I80-day forward	1.6400	0.6098

On the same day, Desreumaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million francs.

a. What is the price of the watches, in U.S. dollars, if purchased at today's spot rate?

b. What is the cost, in dollars, of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate?

c. If the exchange rate for the Swiss franc is 0.50 to $1 in 90 days, how much will he have to pay for the watches (in dollars)?

Reference no: EM131367772

Questions Cloud

What was the exchange rate between francs and pounds : Suppose the exchange rate between U.S. dollars and the Swiss franc was SFr1.6 $1, and the exchange rate between the dollar and the British pound was £1 $1.50. What was the exchange rate between francs and pounds?

What is corporate culture : What is Corporate Culture? Might corporate culture be considered a contributor to workplace discrimination? How so? Please use examples/cases to support your response. Please use class material to support your answer.

Has your company made a gain or loss as a result : At the time the loan was received, the exchange rate was 75 U.S. cents to the Canadian dollar. By the end of the month, it has unexpectedly dropped to 70 cents. Has your company made a gain or loss as a result, and by how much?

What would the dollar price of the car be : Has the price, in dollars, of the automobile increased or decreased during the 20-year period because of changes in the exchange rate?

What is the price of the watches in us dollars : What is the cost, in dollars, of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate?

Write a behavioral vhdl code for a floating-point multiplier : Ignore special cases like infinity, denormalized, and not-a-number formats. Truncate the final result instead of rounding.

Describe the type of structure and materials of construction : 015056RR- ASHI standards require a home inspector to identify and describe the type of structure and materials of construction before.

Describe three different barriers to effective listening : Describe three different barriers to effective listening and how they develop in the workplace.Describe some basic steps you could take to remove existing barriers in your current workplace (or classroom).Describe the different types of listeners and..

Reasons for studying health care systems abroad : What are some reasons for studying health care systems abroad? Please support your responses with credible references.

User Account

All Pages