Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. problem 19-13 anderson australian imports has agre

Problem 19-13 Anderson Australian Imports has agreed to purchase 15,000 cases of Australian wine for...

50.1K

Verified Solution

Question

Finance

image
Problem 19-13 Anderson Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4 million Australian dollars at today's spot rate. The firm's financial manager, Linda Wilson, has noted the following current spot and forward rates: U.S. Dollar/Australian Dollar Australian Dollar/U.S. Dollar Spot 0.9307 1.0745 30-day forward 0.9288 1.0767 90-day forward 0.9247 1.0814 180-day forward 0.9190 1.0881 On the same day, Wilson agrees to purchase 15,000 more cases of wine in 3 months at the same price of 4 million Australian dollars. a. What is the price of the wine in U.S. dollars if it is purchased at today's spot rate? b. What is the cost in U.S. dollars of the second 15,000 cases if payment is made in 90 days and the spot rate at that time equals today's 90-day forward rate? If the exchange rate for the Australian dollar is 1.03 to $1 in 90 days, how much will Wilson have to pay for the wine (in U.S. dollars)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

describe the four functions of the code of ethics

Psychology
Q

Please in your own words explain what you learned in Big short movie (2015). This is...

General Management
Q

Research the topic below. Write one full page document (12 pt font) on your findings ....

General Management
Q

4 If solid iron is dropped into liquid iron will the solid iron float or...

Biology
Q

The diagram shows a negatively charged oil drop that is suspended motionless between two oppositely...

Physics
Q

e following information for the past year for the Magic Corporation has been provided xed...

Basic Math
Q

Solve the equation on the interval 0 0 2 cot 0 1 2 csc What...

Algebra
Q

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials...

Accounting
Q

1.) Milloy Furniture purchased land, paying $75,000 cash and signing a $320,000 note payable. In...

Accounting
Q

EcoFabrics has budgeted overhead costs of $1,011,150. It has assigned overhead on a plantwide basis...

Accounting
Q

In its first year of operations a company produced and sold 70,000 units of Product...

Accounting
Q

Tamar owns a condominlum near Cocoa Beach in Florida. In 2022, she incurs the following...

Accounting