Hello Sir, I have a feeling this ques is mistyped, please confirm...
''Plum co based in japan has entered into a contract with New Zealand co to purchase machinery. The cost in New Zealand dollars is NZD 400.000 and is due to be paid in 6 months. Plum co decides to enter Forward exchange rate contract with its bank who has offered a contract at its following 6 months rates:
Yen 77.2-78.2- 1 NZD
Calculate to nearest dollar, the value of New Zealand dollars that would be needed to settle the purchase invoice if forward exchange contract is used. ( answer in NZD)''
I don't understand, I mean we normally calculate yen yeah?
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Plum co. Kaplan Kit
5y ago#1It does seem to be typed wrongly in that obviously if the answer is required in NZD then the answer is NZD 400,000 :-)
It would make more sense to have asked how many Yen were needed!
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