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Dell is selling 20,000 units in Europe at an average price of 1,700 per unit. Both the spot and forward exchange rates are $1.20/. The

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Dell is selling 20,000 units in Europe at an average price of 1,700 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1,500 per unit. The elasticity of demand for Dell computers in Europe is E = 1.5. Now consider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/. What are respectively the delta and exposure for Dell's dollar profit when passthrough - 0.5? delta-1.137, exposure - 10,233,000 million delta-2.566; exposure - 23,094,000 million delta-5.741; exposure - 51,660,000 million delta-1.981: exposure - 17.829.000 million

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