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Zielflug [23.3K]
3 years ago
6

1. Mississippi Mud Pies, Inc. needs to buy 1,000,000 Swiss francs (CHF) to pay its Swiss chocolate supplier. Its banker quotes b

id–ask rates of CHF1.3990–1.4000/USD. What will be the dollar cost of the CHF1,000,000?
Business
1 answer:
ICE Princess25 [194]3 years ago
5 0

Answer:

$714,796.28

Explanation:

The computation of the dollar cost of the CHF1,000,000 is shown below:

= Number of Swiss francs buys ÷ banker quotes bid–ask rates

= 1,000,000 Swiss francs ÷  CHF 1.3990/USD

= $714,796.28

Simply we divide the Number of Swiss francs buys by the banker quotes bid–ask rates so that the dollar cost of the CHF1,000,000 could come.

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