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    Simba Mashiri
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    You have been invited to business seminars in Germany, New Zealand, and Great Britain with a $3,000 travel allowance and plan to spend $1,000 in each country. Using the exchange rates provided, you can buy 1,304 EUR, 670 NZD, and 1,905 GBP with your $3,000 travel budget to spend in each country.

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    You have been invited to business seminars in Germany, New Zealand, and Great Britain with a $3,000 travel allowance and plan to spend $1,000 in each country. Using the exchange rates provided, you can buy 1,304 EUR, 670 NZD, and 1,905 GBP with your $3,000 travel budget to spend in each country.

    Copyright:

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

    B

    Uploaded by

    Simba Mashiri
    You have been invited to business seminars in Germany, New Zealand, and Great Britain with a $3,000 travel allowance and plan to spend $1,000 in each country. Using the exchange rates provided, you can buy 1,304 EUR, 670 NZD, and 1,905 GBP with your $3,000 travel budget to spend in each country.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    (b) As an international finance expert, you have been invited to three business seminars to

    be hosted in Germany, New Zealand and Great Britain. Your business travel
    allowances add up to $US$3 000 and you have budgeted to spend US$1 000 in each
    business seminar. Your Zimbabwean Bank offers you the following Bid-Ask
    quotations:
    USD/EUR 1.304 - 1.305
    USD/NZD 0.67 - 0.69
    USD/GBP 1.90 - 1.95

    (i) If you trade using these forex quotations, how many EUR, NZD and GBP do you
    have at departure? [6]

    USD1=EUR1.304

    =1000*1.304

    (ii) If you return with EUR300, NZD1 000 and GBP75 and the prevailing exchange rates
    are unchanged, how many USD will you have after trading? [9]

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