A U.S. firm sells merchandise today to a British company for £150,000
The current exchange rate is $1.55/£ , the account is payable 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 today of a loss if:
A) the exchange rate changes to $1.52/£.
B) the exchange rate changes to $1.58/£.
C) the exchange rate doesn't change.
D) all of the above
Answer: D
You might also like to view...
When including writing a buffer that includes information that is favorable to the reader, what type of buffer is being used?
A) Agreement B) Appreciation C) Good news D) Understanding E) Fairness
Consider the assembly line below. The three fabrication operations run in parallel, such that each batch of 20 units only needs to go through one of the three fabrication operations
After that, each batch needs to go through both assembly operations, which occur simultaneously (specifically, 10 components are made for each unit in the fabrication stage—some components are then assembled in the Assembly 1 area while others are assembled in the Assembly 2 area). The units are packaged and made ready for shipment in the final stage. What is the throughput time per batch of this operation? A) 88 min. B) 8 min. C) 40 min. D) 34 min. E) 33 min.