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DeMagistris Fashion Company in New York City imports jewelry from Acuna in Argentina. Payment is in Argentine pesos. They have a risk - sharing agreement
DeMagistris Fashion Company in New York City imports jewelry from Acuna in Argentina. Payment is in Argentine pesos. They have a risksharing agreement to share the difference equally if the pesodollar exchange rate falls outside of Ps and Ps DeMagistris contracts to import jewelry worth pesos. The spot rate is currently Ps What will be the dollar cost of imports if:
the peso increases to Ps$
$
$$
$
$
$
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