5*13 Points] Suppose Cadillac has full manufacturing costs of their Escalade-SUV of $62,503. They sell this SUV in the U.S. with an 18% margin for a price of $73,753.54. Today these cars are available in the U.K. for 59,002.832 which is the US price divided by the current exchange rate of $1.25/. Cadillac has committed to keeping the UK price at 59,002.832 for the next six months a) If the UK pound depreciates against the USD to an exchange rate of $1.10/f, and Cadillac has not hedged against currency changes, what is the percentage margin (%$) Cadillac will realize from UK sales given the new exchange rate? Given f depreciation in above, and Cadillac's decision of selling the SUV at 59,002.832 in UK, how can one profit from this situation. (assume zero transaction and transportation costs) b)