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33. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 7.2501 South African rand
34. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 3.8249 Saudi Arabian riyal
35. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 48.210 Philippine peso
36. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 0.5467 Latvian lat
37. Currency Exchange Compute the amount of foreign currency that can be purchased for
$200,000:
1 Danish krone = $0.1755
38. Currency Exchange Compute the amount of foreign currency that can be purchased for
$400,000:
1 Indian rupee = $0.02250
39. Currency Exchange Compute the amount of foreign currency that can be purchased for
$750,000:
1 Israeli shekel = $0.2351
40. Currency Exchange Compute the amount of foreign currency that can be purchased for
$600,000:
1 Korean won = $0.001045
41. Currency Exchange Compute the amount of foreign currency that can be purchased for
$1,000,000:
1 Malaysian ringget = $0.2875
42. Currency Exchange Compute the amount of foreign currency that can be purchased for
$1,300,000:
1 Thai baht = $0.03057
43. Currency Exchange Compute the number of dollars that can be bought with 2 million of
foreign currency units:
$1 = 15,990 Vietnam dong
44. Currency Exchange Compute the number of dollars that can be bought with 5 million of
foreign currency units:
$1 = 2,150.4 Venezuelan bolivar
45. Currency Exchange Compute the number of dollars that can be bought with 8 million of
foreign currency units:
$1 = 7.2501 South African rand
46. Currency Exchange Compute the number of dollars that can be bought with 1 million of
foreign currency units:
$1 = 3.8249 Saudi Arabian riyal
47. Currency Exchange Compute the number of dollars that can be bought with 2 million of
foreign currency units:
$1 = 48.210 Philippine peso
48. Currency Exchange Compute the number of dollars that can be bought with 1.5 million
of foreign currency units:
$1 = 0.5467 Latvian lat
49. Law of One Price If the price of silver in England is £7.10 per ounce, what is the
expected price of silver in the United States if the spot exchange rate is $1 = £0.5275?
50. Law of One Price If the price of silver in England is £6.85 per ounce, what is the
expected price of silver in the United States if the spot exchange rate is $1 = £0.5426?
51. Law of One Price If the price of copper in Europe is €2.22 per ounce, what is the
expected price of copper in the United States if the spot exchange rate is $1 = €0.7802?
52. Discount Rates A financial manager has determined that the appropriate discount rate
for a foreign project is 15 percent. However, that discount rate applies in the United States using
dollars. What discount rate should be used in the foreign country using the foreign currency? The
inflation rate in the United States and in the foreign country is expected to be 5 percent and 7
percent, respectively.
