Question

3.Assuming the quotes of exchange rates against dollar for the Swiss franc and the Australian dollar are as follows: Bank QuotationsBidAsk $ / SFr .7265 .7272 $ / A$ .6135 .6140 Suppose a Swiss company has investment proceeds equal to 1 million Australian dollars, and wants to convert it to Swiss franc. What are his proceeds from conversion

Answer 1

proceeds from conversion is SFr 843,646.86

Step-by-step explanation:

The computation of the proceeds from the conversion is shown below:

By Converting A$ into $ so we get

= 1,000,000 × 0.6135

= $613,500

And, if

Convert $ into Sfr

So,

= $613,500 ÷ 0.7272

= Sfr 843,646.8646

Therefore, proceeds from the conversion is SFr 843,646.86

The same is to be considered so that the correct value could come