A MNC want to convert (sell) EUR2,000,000 and USD5,000,000 to GBP. Market rates currently are: EUR1:...
A MNC want to convert (sell) EUR2,000,000 and USD5,000,000 to
GBP. Market rates currently are:
EUR1: GBP 0.8680 – 0.8695
USD1: GBP 0.7692 - 0.7705
How much GBP will that MNC receive
Homework Answers
A MNC want to convert (sell) EUR2,000,000 and USD5,000,000 to
GBP. Market rates currently are:
EUR1: GBP 0.8680 – 0.8695
USD1: GBP 0.7692 - 0.7705
Here number of euros = 20,00,000 EUR
Now the selling rate of Euro to GBP is 0.8680
Number of GBP received = 20,00,000 * 0.8680 = 17,36,000 GBP
Now number of US Dollars = 50,00,000
Now the selling rate of Dollars to GBP is 0.7692
Number of GBP received = 50,00,000 * 0.7692 = 38,46,000 GBP
Total GBP MNC will receive = 1736000 + 3846000 = 55,82,000 GBP
GBP that will MNC receive is 55,82,000 GBP .
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A MNC want to convert (sell) EUR2,000,000 and USD5,000,000 to
GBP. Market rates currently are:
EUR1:...
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