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A U.S. firm sells merchandise today to a British company for GBP 150,000. The current spot exchange rate is 1.5500 USD/GBP and the account is

A U.S. firm sells merchandise today to a British company for GBP 150,000. The current spot exchange rate is 1.5500 USD/GBP and the account is payable in three months. Without any hedging, what would happen if the exchange rate changes to 1.5800 USD/GBP?

A. The firm would record a gain of USD 4,500.

B. The firm would record a gain of GBP 4,500.

C. The firm would record a loss of GBP 4,500.

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