Michelle Wong

Section A

1. To satisy our 4.5M GBP and 10M CAD constraints while

maximizing USD value, we execute the following transactions.
Exchange 1.91944 EUR for GBP and 6.08056 EUR for CHF.
Exchange 2.956208 CHR for GBP and 7.043792 CHR for CAD.
Exchange 1.2 USD for GBP.
2. While satisfying the same constraints, we still trade 1.91944
EUR for GBP, 2.956208 CHR for GBP, 7.043792 CHR for CAD, and
1.2 USD for GBP. The only thing that changes is that we do not
trade 6.08056 EUR for CHF.
Microsoft Excel 16.0 Answer Report
Worksheet: [forex calculator.xlsx]Q1
Report Created: 2/20/2019 12:56:39 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.265 Seconds.
Iterations: 26 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.0001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$H$29 Final USD Value of Holdings Required $21.674400 $21.676500

Variable Cells
Cell Name Original Value Final Value Integer
$C$14 GBP GBP 0 0 Contin
$D$14 GBP CAD 0 0 Contin
$E$14 GBP EUR 0 0 Contin
$F$14 GBP CHF 0 0 Contin
$G$14 GBP USD 0 0 Contin
$C$15 CAD GBP 0 0 Contin
$D$15 CAD CAD 0 0 Contin
$E$15 CAD EUR 0 0 Contin
$F$15 CAD CHF 0 0 Contin
$G$15 CAD USD 0 0 Contin
$C$16 EUR GBP 1.9194401683 0 Contin
$D$16 EUR CAD 0 0 Contin
$E$16 EUR EUR 0 0 Contin
$F$16 EUR CHF 6.0805598317 8 Contin
$G$16 EUR USD 0 0 Contin
$C$17 CHF GBP 2.9562077575 0 Contin
$D$17 CHF CAD 7.0437922425 7.0437922425 Contin
$E$17 CHF EUR 0 0 Contin
$F$17 CHF CHF 0 0 Contin
$G$17 CHF USD 0 4.8487570717 Contin
$C$18 USD GBP 1.2 6.7530390364 Contin
$D$18 USD CAD 0 0 Contin
$E$18 USD EUR 0 0 Contin
$F$18 USD CHF 0 0 Contin
$G$18 USD USD 0 0 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$19 Total bought GBP 4.5 $C$19>=0 Not Binding 4.5
$D$19 Total bought CAD 10 $D$19>=0 Not Binding 10
$E$19 Total bought EUR 0 $E$19>=0 Binding 0
$F$19 Total bought CHF 7.8956 $F$19>=0 Not Binding 7.8956
$G$19 Total bought USD 5.5530390364 $G$19>=0 Not Binding 5.553039036
$F$23 GBP Final 4.500 $F$23>=$H$23 Binding 0.000
$F$24 CAD Final 10.000 $F$24>=$H$24 Binding 0.000
$F$25 EUR Final 0 $F$25>=$H$25 Binding 0
$F$26 CHF Final 6.0030506858 $F$26>=$H$26 Not Binding 6.003050686
$F$27 USD Final 0 $F$27>=$H$27 Binding 0
$H$14 GBP Sold 0 $H$14>=0 Binding 0
$H$15 CAD Sold 0 $H$15>=0 Binding 0
$H$16 EUR Sold 8 $H$16>=0 Not Binding 8
$H$17 CHF Sold 11.892549314 $H$17>=0 Not Binding 11.89254931
$H$18 USD Sold 6.7530390364 $H$18>=0 Not Binding 6.753039036
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [forex calculator.xlsx]Q1
Report Created: 2/20/2019 12:56:40 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$14 GBP GBP 0 -1.5001079021 -1.4987997 1.500107902 1E+030
$D$14 GBP CAD 0 -0.0006808457 -0.0012254472 0.000680846 1E+030
$E$14 GBP EUR 0 0 -0.001457474 0.000567439 0.000186575
$F$14 GBP CHF 0 -0.0001865749 0.0011216272 0.000186575 1E+030
$G$14 GBP USD 0 -0.0013082021 0 0.001308202 1E+030
$C$15 CAD GBP 0 -0.0003732203 -0.0005948059 0.00037322 1E+030
$D$15 CAD CAD 0 -0.8064794383 -0.8056935 0.806479438 1E+030
$E$15 CAD EUR 0 -2.323677E-05 -0.0007241226 2.323677E-05 1E+030
$F$15 CAD CHF 0 0 0.0007859383 0.000210868 2.323677E-05
$G$15 CAD USD 0 -0.0007859383 0 0.000785938 1E+030
$C$16 EUR GBP 0 -0.0010109522 -0.000338529 0.001010952 1E+030
$D$16 EUR CAD 0 -0.0010189693 -0.0003305111 0.001018969 1E+030
$E$16 EUR EUR 0 -1.1303044875 -1.1282206 1.130304488 1E+030
$F$16 EUR CHF 8 0 0.0020838875 3.779213E-06 0.000140581
$G$16 EUR USD 0 -0.0020838875 3.552714E-15 0.002083887 1E+030
$C$17 CHF GBP 0 -5.725964E-05 -0.0014885958 5.725964E-05 1E+030
$D$17 CHF CAD 7.043792243 0 -0.0014151561 0.000299368 4.91453E-05
$E$17 CHF EUR 0 -9.805881E-05 -0.0022093198 9.805881E-05 1E+030
$F$17 CHF CHF 0 -1.14525 -1.14525 1.14525 1E+030
$G$17 CHF USD 4.848757072 0 -3.552714E-15 3.486148E-15 5.72625E-05
$C$18 USD GBP 6.753039036 0 -0.0012498649 0.000378123 0.00005
$D$18 USD CAD 0 -4.291045E-05 -0.0012785318 4.291045E-05 1E+030
$E$18 USD EUR 0 -3.343524E-06 -0.0018469888 3.343524E-06 1E+030
$F$18 USD CHF 0 -5.24485E-05 -5.24485E-05 5.24485E-05 1E+030
$G$18 USD USD 0 -1 -1 1 1E+030

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$19 Total bought GBP 4.5 0 0 4.5 1E+030
$D$19 Total bought CAD 10 0 0 10 1E+030
$E$19 Total bought EUR 0 0 0 0 1E+030
$F$19 Total bought CHF 7.8956 0 0 7.8956 1E+030
$G$19 Total bought USD 5.553039036 0 0 5.553039036 1E+030
$F$23 GBP Final 4.5 -0.0018756414 4.5 4.581266586 3.70036002
$F$24 CAD Final 10 -0.0009968066 10 8.522469827 10
$F$25 EUR Final 0 -0.0020838875 0 6.08242635 1E+030
$F$26 CHF Final 6.003050686 0 0 6.003050686 1E+030
$F$27 USD Final 0 -3.044006E-15 0 6.874993798 5.553039036
$H$14 GBP Sold 0 -0.0005674393 0 12115.82268 0
$H$15 CAD Sold 0 -0.0002108683 0 32603.25936 0
$H$16 EUR Sold 8 0 0 8 1E+030
$H$17 CHF Sold 11.89254931 0 0 11.89254931 1E+030
$H$18 USD Sold 6.753039036 0 0 6.753039036 1E+030
Rates Buy
GBP CAD EUR CHF USD
GBP - 1.8587 1.3272 1.3097 1.4988
CAD 0.5372 - 0.7135 0.7042 0.8057
Sell EUR 0.7525 1.3999 - 0.9870 1.1282
CHF 0.7631 1.4197 1.0131 - 1.1453
USD 0.6664 1.2396 0.8847 0.8731 -

Transactions Buy Total

GBP CAD EUR CHF USD Sold
GBP 0 0 0 0 0 0
CAD 0 0 0 0 0 0
Sell EUR 0 0 0 8 0 8
CHF 0 7.043792 0 0 4.848757 11.8925493
USD 6.753039 0 0 0 0 6.75303904
Total bought 4.5 10 0 7.8956 5.553039

Positions
Initial Bought Sold Final Required
GBP 0 4.500 0 4.500 4.5
CAD 0 10.000 0 10.000 10
EUR 8 0 8 0 0
CHF 10 7.8956 11.89255 6.003051 0
USD 1.2 5.553039 6.753039 0 0

Final USD Value of Holdings $21.676527

Initial USD Value of Holdings $21.678265

Transaction Costs $0.001737
Microsoft Excel 16.0 Answer Report
Worksheet: [forex calculator.xlsx]Exchange rate calculator (2)
Report Created: 2/19/2019 10:05:02 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.125 Seconds.
Iterations: 21 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.0001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$H$29 Final USD Value of Holdings Required $21.694900 $21.674400

Variable Cells
Cell Name Original Value Final Value Integer
$C$15 CAD GBP 0 0 Contin
$C$16 EUR GBP 0 1.9194401683 Contin
$C$17 CHF GBP 0 2.9562077575 Contin
$C$18 USD GBP 0 1.2 Contin
$D$16 EUR CAD 0 0 Contin
$D$17 CHF CAD 0 7.0437922425 Contin
$D$18 USD CAD 0 0 Contin
$E$17 CHF EUR 0 0 Contin
$E$18 USD EUR 0 0 Contin
$F$18 USD CHF 0 0 Contin
$D$14 GBP CAD 0 0 Contin
$E$14 GBP EUR 0 0 Contin
$E$15 CAD EUR 0 0 Contin
$F$14 GBP CHF 0 0 Contin
$F$15 CAD CHF 0 0 Contin
$F$16 EUR CHF 8 6.0805598317 Contin
$G$14 GBP USD 0 0 Contin
$G$15 CAD USD 0 0 Contin
$G$16 EUR USD 0 0 Contin
$G$17 CHF USD 0 0 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$19 Total bought GBP 4.5 $C$19>=0 Not Binding 4.5
$D$19 Total bought CAD 10 $D$19>=0 Not Binding 10
$E$19 Total bought EUR 0 $E$19>=0 Binding 0
$F$19 Total bought CHF 6.0012085259 $F$19>=0 Not Binding 6.001208526
$G$19 Total bought USD 0 $G$19>=0 Binding 0
$F$23 GBP Final 4.500 $F$23>=$H$23 Binding 0.000
$F$24 CAD Final 10.000 $F$24>=$H$24 Binding 0.000
$F$25 EUR Final 0 $F$25>=$H$25 Binding 0
$F$26 CHF Final 6.0012085259 $F$26>=$H$26 Not Binding 6.001208526
$F$27 USD Final 0 $F$27>=$H$27 Binding 0
$H$14 GBP Sold 0 $H$14=0 Binding 0
$H$15 CAD Sold 0 $H$15=0 Binding 0
$H$16 EUR Sold 8 $H$16<=8 Binding 0
$H$17 CHF Sold 10 $H$17<=10 Binding 0
$H$18 USD Sold 1.2 $H$18<=1.2 Binding 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [forex calculator.xlsx]Exchange rate calculator (2)
Report Created: 2/19/2019 10:05:02 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$15 CAD GBP 0 0 -0.0005948059 0.000352996 5.639121E-05
$C$16 EUR GBP 1.919440168 0 -0.000338529 0.000488099 0.00006454
$C$17 CHF GBP 2.956207757 0 -0.0014885958 5.73109E-05 0.00053825
$C$18 USD GBP 1.2 0 -0.0012498649 1E+030 5.004226E-05
$D$16 EUR CAD 0 -6.453633E-05 -0.0003305111 6.453633E-05 1E+030
$D$17 CHF CAD 7.043792243 0 -0.0014151561 0.002383082 6.544867E-05
$D$18 USD CAD 0 -0.000092989 -0.0012785318 0.000092989 1E+030
$E$17 CHF EUR 0 -0.0005382504 -0.0022093198 0.00053825 1E+030
$E$18 USD EUR 0 -0.0004377107 -0.0018469888 0.000437711 1E+030
$F$18 USD CHF 0 -0.0009476561 -5.24485E-05 0.000947656 1E+030
$D$14 GBP CAD 0 -0.0001048946 -0.0012254472 0.000104895 1E+030
$E$14 GBP EUR 0 0 -0.001457474 1E+030 0.000104895
$E$15 CAD EUR 0 0 -0.0007241226 5.639121E-05 0.000352996
$F$14 GBP CHF 0 -0.0008778876 0.0011216273 0.000877888 1E+030
$F$15 CAD CHF 0 -0.0003484121 0.0007859383 0.000348412 1E+030
$F$16 EUR CHF 6.080559832 0 0.0020838875 1E+030 0.000488099
$G$14 GBP USD 0 -0.0007327812 0 0.000732781 1E+030
$G$15 CAD USD 0 -0.0004534061 0 0.000453406 1E+030
$G$16 EUR USD 0 -0.0011303545 3.552714E-15 0.0011303545 1E+030
$G$17 CHF USD 0 0 -3.552714E-15 0.000967926 5.73109E-05

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$19 Total bought GBP 4.5 0 0 4.5 1E+030
$D$19 Total bought CAD 10 0 0 10 1E+030
$E$19 Total bought EUR 0 -0.0026047793 0 0 0
$F$19 Total bought CHF 6.001208526 0 0 6.001208526 1E+030
$G$19 Total bought USD 0 0 0 0 1E+030
$F$23 GBP Final 4.5 -0.0032190574 4.5 4.575764471 1.444423929
$F$24 CAD Final 10 -0.0016785933 10 4.196898 2.687177144
$F$25 EUR Final 0 0 0 0 1E+030
$F$26 CHF Final 6.001208526 0 0 6.001208526 1E+030
$F$27 USD Final 0 -0.0008451654 0 3.385596934 0
$H$14 GBP Sold 0 -0.0012195426 0 0 0
$H$15 CAD Sold 0 -0.0005442429 0 4.196898 0
$H$16 EUR Sold 8 0.0020838875 8 0 6.080559832
$H$17 CHF Sold 10 0.0009679256 10 1.892791752 2.956207757
$H$18 USD Sold 1.2 5.004226E-05 1.2 3.385596934 0
Rates Buy
GBP CAD EUR CHF USD
GBP - 1.8587 1.3272 1.3097 1.4988
CAD 0.5372 - 0.7135 0.7042 0.8057
Sell EUR 0.7525 1.3999 - 0.9870 1.1282
CHF 0.7631 1.4197 1.0131 - 1.1453
USD 0.6664 1.2396 0.8847 0.8731 -

Transactions Buy Total

GBP CAD EUR CHF USD Sold
GBP 0 0 0 0 0
CAD 0 0 0 0 0
Sell EUR 1.91944 0 0 0 1.91944017
CHF 2.956208 7.043792 0 0 10
USD 1.2 0 0 0 1.2
Total bought 4.5 10 0 0 0

Positions
Initial Bought Sold Final Required
GBP 0 4.500 0 4.500 4.5
CAD 0 10.000 0 10.000 10
EUR 8 0 1.91944 6.08056 0
CHF 10 0 10 0 0
USD 1.2 0 1.2 0 0

Final CHF Value of Holdings $18.936760

Initial CHF Value of Holdings $18.943351

Transaction Costs $0.006591
Microsoft Excel 16.0 Answer Report
Worksheet: [forex calculator.xlsx]Q2
Report Created: 2/19/2019 10:12:43 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.109 Seconds.
Iterations: 18 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.0001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$H$29 Final CHF Value of Holdings Required $18.936800 $18.936800

Variable Cells
Cell Name Original Value Final Value Integer
$C$15 CAD GBP 0 0 Contin
$C$16 EUR GBP 1.9194401683 1.9194401683 Contin
$C$17 CHF GBP 2.9562077575 2.9562077575 Contin
$C$18 USD GBP 1.2 1.2 Contin
$D$16 EUR CAD 0 0 Contin
$D$17 CHF CAD 7.0437922425 7.0437922425 Contin
$D$18 USD CAD 0 0 Contin
$E$17 CHF EUR 0 0 Contin
$E$18 USD EUR 0 0 Contin
$F$18 USD CHF 0 0 Contin
$D$14 GBP CAD 0 0 Contin
$E$14 GBP EUR 0 0 Contin
$E$15 CAD EUR 0 0 Contin
$F$14 GBP CHF 0 0 Contin
$F$15 CAD CHF 0 0 Contin
$F$16 EUR CHF 6.0805598317 0 Contin
$G$14 GBP USD 0 0 Contin
$G$15 CAD USD 0 0 Contin
$G$16 EUR USD 0 0 Contin
$G$17 CHF USD 0 0 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$19 Total bought GBP 4.5 $C$19>=0 Not Binding 4.5
$D$19 Total bought CAD 10 $D$19>=0 Not Binding 10
$E$19 Total bought EUR 0 $E$19>=0 Binding 0
$F$19 Total bought CHF 0 $F$19>=0 Binding 0
$G$19 Total bought USD 0 $G$19>=0 Binding 0
$F$23 GBP Final 4.500 $F$23>=$H$23 Binding 0.000
$F$24 CAD Final 10.000 $F$24>=$H$24 Binding 0.000
$F$25 EUR Final 6.0805598317 $F$25>=$H$25 Not Binding 6.080559832
$F$26 CHF Final 0 $F$26>=$H$26 Binding 0
$F$27 USD Final 0 $F$27>=$H$27 Binding 0
$H$14 GBP Sold 0 $H$14=0 Binding 0
$H$15 CAD Sold 0 $H$15=0 Binding 0
$H$16 EUR Sold 1.9194401683 $H$16<=8 Not Binding 6.080559832
$H$17 CHF Sold 10 $H$17<=10 Binding 0
$H$18 USD Sold 1.2 $H$18<=1.2 Binding 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [forex calculator.xlsx]Q2
Report Created: 2/19/2019 10:12:44 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$15 CAD GBP 0 0 -0.0006795445 0.000308226 4.923921E-05
$C$16 EUR GBP 1.919440168 0 -0.0013781843 0.000426194 5.635452E-05
$C$17 CHF GBP 2.956207757 0 -0.0005524223 5.004226E-05 0.000469985
$C$18 USD GBP 1.2 0 -0.0003929285 1E+030 4.369549E-05
$D$16 EUR CAD 0 -5.635131E-05 -0.0011474908 5.635131E-05 1E+030
$D$17 CHF CAD 7.043792243 0 -0.0002613993 0.0011065647 5.714793E-05
$D$18 USD CAD 0 -8.119535E-05 -0.0002199084 8.119535E-05 1E+030
$E$17 CHF EUR 0 -0.000469985 -8.562219E-05 0.000469985 1E+030
$E$18 USD EUR 0 -0.0003821966 4.287708E-05 0.000382197 1E+030
$F$18 USD CHF 0 -0.0008274666 0 0.000827467 1E+030
$D$14 GBP CAD 0 -0.000091591 -0.0007738223 0.000091591 1E+030
$E$14 GBP EUR 0 0 0.0001629119 1E+030 0.000091591
$E$15 CAD EUR 0 0 -2.028969E-05 4.923921E-05 0.000308226
$F$14 GBP CHF 0 -0.0007665467 0 0.000766547 1E+030
$F$15 CAD CHF 0 -0.0003042236 0 0.000304224 1E+030
$F$16 EUR CHF 0 0 0 0 1E+030
$G$14 GBP USD 0 -0.0006398439 -0.0010480131 0.000639844 1E+030
$G$15 CAD USD 0 -0.0003959015 -0.0007231571 0.000395901 1E+030
$G$16 EUR USD 0 -0.0009869937 -0.0018712604 0.000986994 1E+030
$G$17 CHF USD 0 0 -5.24485E-05 0.000897614 5.004226E-05

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$19 Total bought GBP 4.5 0 0 4.5 1E+030
$D$19 Total bought CAD 10 0 0 10 1E+030
$E$19 Total bought EUR 0 -0.000454828 0 0 0
$F$19 Total bought CHF 0 0 0 0 1E+030
$G$19 Total bought USD 0 0 0 0 1E+030
$F$23 GBP Final 4.5 -0.0018314169 4.5 4.575764471 1.444423929
$F$24 CAD Final 10 -0.0007794412 10 4.196898 2.687177144
$F$25 EUR Final 6.080559832 0 0 6.080559832 1E+030
$F$26 CHF Final 0 0 0 0 1E+030
$F$27 USD Final 0 -0.0007837711 0 3.385596934 0
$H$14 GBP Sold 0 -0.0010648702 0 0 0
$H$15 CAD Sold 0 -0.0004752175 0 4.196898 0
$H$16 EUR Sold 1.919440168 0 8 1E+030 6.080559832
$H$17 CHF Sold 10 0.0008451654 10 0 2.956207757
$H$18 USD Sold 1.2 4.369549E-05 1.2 3.385596934 0