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    Joyce Monteza
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    The Philippine government imported 10 tons of rice from Vietnam at $35 per kilo on a spot basis payable in dollars on January 19, 2023. The exchange rate on the shipment date of January 17 was $60.20 with a 0.02% premium to buy dollars, making the total peso cost P2,112,000 and dollar cost $35,120. If this was a forward transaction, the settlement would still occur on January 19 using the anticipated forward exchange rate of $60.20 plus 0.02% on that date.

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    International business

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    The Philippine government imported 10 tons of rice from Vietnam at $35 per kilo on a spot basis payable in dollars on January 19, 2023. The exchange rate on the shipment date of January 17 was $60.20 with a 0.02% premium to buy dollars, making the total peso cost P2,112,000 and dollar cost $35,120. If this was a forward transaction, the settlement would still occur on January 19 using the anticipated forward exchange rate of $60.20 plus 0.02% on that date.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    3 views1 page

    International Business

    Uploaded by

    Joyce Monteza
    The Philippine government imported 10 tons of rice from Vietnam at $35 per kilo on a spot basis payable in dollars on January 19, 2023. The exchange rate on the shipment date of January 17 was $60.20 with a 0.02% premium to buy dollars, making the total peso cost P2,112,000 and dollar cost $35,120. If this was a forward transaction, the settlement would still occur on January 19 using the anticipated forward exchange rate of $60.20 plus 0.02% on that date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Activity.

    International Business

    Compute for the Following:

    Philippine government import 10 tons of rice from Vietnam at P35.00/kilo in a free trade. The
    transaction is a spot transaction payable at exporters bank after 2 days after its shipment. It was shipped
    January 17, 2023 payable in Dollar. Philippine government have to buy dollars for buying imports based
    on direct rate at the data of shipment with an additional .02 percent buying rate.

    Questions:

    1. What should be the settlement date?

    2. How many kilos is imported from Vietnam?

    3. How much in peso should be paid? (based on applicable conversion rate)

    4. How much in dollar?

    5. How much is to be transferred to exporters bank during date of settlement?

    Suppose the transaction is now changed into Forward transaction, based on the forward exchange rate,
    meaning the anticipated Dollar rate on the settlement. Suppose the dollar rate during the settlement
    day is P60.20 with additional .02 needed to buy dollars,

    1. When will be the settlement date?

    2. How much is to be paid during the settlement date?

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