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A U.S. firm sells merchandise today to a Japanese company for 15,000,000. The current exchange rate is 100/$ , the account is payable in three
A U.S. firm sells merchandise today to a Japanese company for 15,000,000. The current exchange rate is 100/$ , 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. If in three months the exchange rate changes to 120/$ the U.S. firm will realize a ________ of ________.
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