Froex caculations
-
a) spot rate + preium**
Oct --- 3.8250 + 0.0120 = 3.8370
1.2/100=0.012
Nov --- 3.8250 + 0.0210 = 3.9460
2.1/100=0.021
-
b）spot rate + premium
Oct---3.7750 + 0.0100 = 3.7850
Nov---3.7750 + 0.0200 = 3.7950
Total cost of transaction= USD500,000
1st payment = 50,000 x3.7590=189750
Remainer payment = 450,000
Foward rate-
Spot 3.7950 + Premium. 0.0050
=3.8000
On due date: payment received = 1710,000 > 45000 x 3.8
Total received =189750.
Dr) SGD 50000 / 3.94 SGD 12690.36
Cr) SGD 100000 / 3.91 SGD 25575.44
Net debit = 10132.82
a)On due date
Cr) Bank buys SGD GBP = 40725 / 4 = 10181.25
Dr) Bank sells SGD GBP = 40725 / 3.95 = 10310.13
Net debit to custmoer's A/C 128.88
b）On same day as due date
bank agree to a new forward rate:
spot close ar rate : 3.9600 - 0.0200 = 3.9400
c) One month later, customers SGD 40725 to the bank
SGD 40725/3.9400 = GBP 10336.29
- Net award of the whole
GBP 10207.41 = 10336.29 - 128. 88
Calculate the total income expected by Mr.Lim for this trade transaction
10000 x 1000 = 1000,0000
3.7750 + 0.00015 = 3.77515 ——> 37751500
Rate: 1.8535 + 0.0089 = 1.8446
On due date :
Dr) cost of sal of USD 100,000/1.92 GBP=52,083.33
Cr)Process of Purchase of USD 100,000/1.8446 GBP 54,212.3
Answer= 2128.97
On due date:
Full sell rate(by bank)=1.8525 - 9.094
Cr) purchase of USD 100000/1.93 GBP 51813.48
Dr)Debited FRW customer's A/C GBP 54256.42
(USD 100000/1.8431)
Net debit to customers A/C => GBP 2442.94
