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Currencies-U.S. dollar foreign-exchange rates. in US$ per US$ Country/currency British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 Mr. Charles imports light
Currencies-U.S. dollar foreign-exchange rates. in US$ per US$ Country/currency British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 Mr. Charles imports light bulbs from Norway to sell in Chicago. He can contract today to pay 10,500 Norwegian Kroner for a shipment of light bulbs and to sell the light bulbs for $1,850. However, all payments and receipts will not occur for 30 days. Which of the following is true of this scenario? a. Although the current US dollar Norwegian Kroner exchange rate provides a loss, the level of loss will get smaller if the Norwegian Kroner gains against the dollar. b. Although the current US dollar Norwegian Kroner exchange rate provides a profit, the level of profit will decline if the Norwegian Kroner gains against the dollar. c. The current US dollar Norwegian Kroner exchange rate provides a profit, and that level of profit is not dependent on the movement of the Norwegian Kroner gains against the dollar. d. Although the current US dollar Norwegian Kroner exchange rate provides a loss, the level of loss will get larger if the Norwegian Kroner gains against the dollar. e. Although the current US dollar Norwegian Kroner exchange rate provides a profit, the level of profit will increase if the Norwegian Kroner gains against the dollar
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