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An Indian Exporting Company has just landed a contract worth $25,000 USD with a small, private US-based Importer. The company wants to insure against non-payment

An Indian Exporting Company has just landed a contract worth $25,000 USD with a small, private US-based Importer. The company wants to insure against non-payment and has approached their ECA about Export Credit Insurance. The ECA is willing to insure against the loss by covering 80% through co-insurance, but requires a $5,000 deductible. Should the importer not pay, the exporter would lose:

Question 34 options:

$6,250

$11,250

$10,000

$9,000

$5,000

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