International Finance Problems


  1. Mississippi Mud Pies, Inc. needs to buy 1,000,000 Swiss francs (CHF) to pay its Swiss chocolate supplier. Its banker quotes bid–ask rates of CHF1.3990–1.4000/USD. What will be the dollar cost of the CHF1,000,000?
  2. Western Mining of Australia has called Mitsubishi Tokyo Financial to get its opinion about the Japanese yen–Australian dollar exchange rate. The current rate is ¥67.72/A$, and Mitsubishi thinks the Australian dollar will weaken by 5% over the next year. What is Mitsubishi’s forecast of the future exchange rate?
SKU: international-finance-problems Category: