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Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 Light Rays imports light
Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 Light Rays imports light bulbs from a Norwegian firm and sells them in Chicago. They contract today to pay 10,652 Norwegian Kroner for a shipment of light bulbs and to sell the light bulbs for $2,000, with payment due in Kroner months later. Using the data in the table above, which of the following is true in this scenario? A. The current US dollar Norwegian Kroner exchange rate provides a loss, and the level of loss will get smaller if the Norwegian Kroner gains against the dollar. B. The current US dollar Norwegian Kroner exchange rate provides a profit, and the level of profit will increase if the Norwegian Kroner gains against the dollar. C. The current US dollar Norwegian Kroner exchange rate provides a profit, and the level of profit will decline if the Norwegian Kroner gains against the dollar. D. The current US dollar Norwegian Kroner exchange rate provides a loss, and the level of loss will get larger if the Norwegian Kroner gains against the dollar. Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 Light Rays imports light bulbs from a Norwegian firm and sells them in Chicago. They contract today to pay 10,652 Norwegian Kroner for a shipment of light bulbs and to sell the light bulbs for $2,000, with payment due in Kroner months later. Using the data in the table above, which of the following is true in this scenario? A. The current US dollar Norwegian Kroner exchange rate provides a loss, and the level of loss will get smaller if the Norwegian Kroner gains against the dollar. B. The current US dollar Norwegian Kroner exchange rate provides a profit, and the level of profit will increase if the Norwegian Kroner gains against the dollar. C. The current US dollar Norwegian Kroner exchange rate provides a profit, and the level of profit will decline if the Norwegian Kroner gains against the dollar. D. The current US dollar Norwegian Kroner exchange rate provides a loss, and the level of loss will get larger if the Norwegian Kroner gains against the dollar
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