Purchase Solution

Currency Exchange Rate

Not what you're looking for?

Ask Custom Question

A total of 805 tons of steel was shipped from Belgium to Virginia. The steel was priced at (euro) 940 per ton payable in 90 days. The exchange rate at the time of pricing was (euro) 1/$1.24. The 90- forward rate is (euro) 1/$1.28. How many dollars would the steel cost if payment were made at the time of shipping? How many dollars would the steel cost if payment were made at the end of 90 days?

Purchase this Solution
Solution Summary

This solution is comprised of a detailed calculation to find the payment to be made at the time of shipping and at the end of 90 days.

Solution Preview

How many dollars would the steel cost if payment were made at the time of shipping?

The total cost in Euro = ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • definitions of exchange rate and some references

    [FACS] (see also currency depreciation, currency devaluation, currency revaluation, dirty float, fiscal policy, fixed exchange rate system, floating exchange rate system, foreign currency operations, purchasing power parity theory, exchange) (includes

  • Define a floating exchange rate.

    A free or floating exchange rate is one where no government controls are used to determine the rate of exchange (the value of the currency).

  • Foreign currency gain or loss Exchange rate

    91438 Exchange Rate 1.

  • Fixed and Floating Exchange Rate System

    Under a clean float the exchange rate is determined through equilibrium in the exchange rate market demand and supply of currency therefore, Supply of country U's currency = Demand of country U's currency Therefore, 1.3 - 0.1Qd = -1.1 + 0.2Qs

  • International Finance Questions-Foreign Exchange Rate

    Q11-1 Explain the difference between indirect and direct exchange rates. A direct exchange rate is home currency per unit of foreign currency. An indirect exchange rate is foreign currency per unit of home currency.

  • Currency board & central bank - nominal exchange rate target

    178698 Currency board vs central bank with nominal exchange rate target Describe the chief differences between a currency board and a central bank with a nominal exchange rate target.

  • changes in exchange rates

    Fourth, the expected exchange rate in the future affects demand which in turn affects the exchange rate now. The higher the expected exchange rate, the higher the demand for that currency now as it is relatively cheaper.

  • Foreign Exchange Market - How is it determined?

    However, where there is a fixed exchange rate then a currency's value is fixed against another currency or a basket of currencies. In case of a linked exchange rate, the exchange rate of one currency is linked to the exchange rate of another.

  • Currency Board

    future exchange rate is not affected).

  • Question about Floating exchange rate

    Relative version of Purchasing Power Parity states that the Exchange rate between the home currency and any foreign currency will adjust to reflect changes in the price levels of the two countries.

View More Related Solutions