Question
Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spot and forward exchange rates are $1.20/. The
Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Dell computers in Europe is = 1.5.
What is exposure for Dells dollar profit when passthrough = 0.8?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
2nd Edition
0072318252, 9780072318258
