contestada

A U.S. firm sells merchandise today to a British company for £ 150,000. The current exchange rate is $1.55/£, the account is receivable in three months and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. The U.S. firm is at risk of a loss if:_______

Respuesta :

Answer:

4,500

Explanation:

We assume

If the exchange rate changes to $1.52/£  is not given in the question so we consider this information

The computation of a risk loss in U.S firm is shown below:

= Sale value of merchandise × (change in exchange rate - current exchange rate

= £ 150,000 × ($1.52/£ - $1.55/£)

= 4,500

We simply take the difference of the exchange rate and multiplied it by the sale value of merchandise so that the correct amount can come.

Otras preguntas