Suppose Dow Chemical receives quotes of 000824245 for the ye

Suppose Dow Chemical receives quotes of $0.008242-45 for the yen and $0.03023-27 for the Taiwan dollar (NT$).

(a) How many yen will Dow Chemical receive for NT$200 million?

(b) What is the yen cost to Dow Chemical of buying NT$80 million?

Quotes for Yen = $0.008242

Quotes for Taiwan dollar = $0.03023

Value of receivables = NT$200 million

Total Yen paid = ($0.03023 / $0.008242) × 200 million

= 3.6678 × 200 million

= 733.56 million Yen

Hence, Total yen Dow Chemical will receive for NT$200 million is 733.56 million Yen.

Value of payable = NT$200 million

Total Yen cost = ($0.03023 / $0.008242) × 80 million

= 3.6678 × 80 million

= 293.42 million Yen

Hence, total yen cost to Dow Chemical of buying NT$80 million is 293.42 million Yen