Foreign exchange

Foreign Exchange Students Name Institutional Affiliation Course Code and Name Instructors Name Date Foreign Exchange To: ABC Manufacturing Company From: Insert your name Scenario 1: Utilizing Spot Rate on April 1st In this scenario, the company converts sales revenue from Malaysian Ringgit (MYR) to U.S. dollars (USD) using the spot rate on April 1st. Given the spot rate of 3.52 MYR/USD on April 1st, the conversion would yield a specific USD amount. However, this scenario is subject to exchange rate fluctuations, potentially affecting profitability. The variability in exchange rates could lead to unpredictable revenue outcomes in USD, impacting financial stability and planning. Scenario 2: Forward Rate Agreement on January 1st Alternatively, the company could have opted for a forward rate ...