Question
Duke Thompson Inc. is an U.S.-based investment fund that owns substantial EUR-denominated investments in Germany; J.C. Inc. is an U.S.-based import business specializing in Italian
Duke Thompson Inc. is an U.S.-based investment fund that owns substantial EUR-denominated investments in Germany; J.C. Inc. is an U.S.-based import business specializing in Italian luxury food items; Assume that J.C. Inc. pays his Italian suppliers in EUR. If X0USD/EUR= 1.05 to X1USD/EUR = 1.13. Which of the following two statements is correct?
S1: Duke Thompson Inc. benefits from this FX rate change.
S2: J.C. Inc. benefits from this FX rate change.
Both statements are correct
S2 is correct but S1 is false
S1 is correct and S2 is false
Both statements are false
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Finance And Democracy Towards A Sustainable Financial System
Authors: Alessandro Vercelli
1st Edition
3030279111, 978-3030279110
