Exchange rates at the time of signing the agreements are as follows:

USD$ 1 = 125 YEN USD$ 1 = Brazilian Real .57

Questions:

1. On the line below indicate whether the firm earned a profit or loss from this deal and what was the $ dollar amount of the profit or loss in total. (Clearly state if a profit or loss was earned, what it was and show profit or loss calculation clearly with labels in space below)

_________Place word profit or loss on line.

_________Place amount on line.

Show work clearly below:

1. a) What impact would a depreciation of the Japanese Yen relative to the U.S. dollar have on the U.S. company's profits/loss on this transaction? You must look at the relevant impact on Revenue and/or Costs for # 2,3, and 4. (chose increase profit, increase loss, decrease profit, decrease loss, or no change and place this answer on line below)

_________Ans. Why?

1. a) What impact would a depreciation of the Brazilian Real relative to the U.S. dollar have on the U.S. company's profit/loss on this transaction? (increase profit, decrease profit, increase loss, decrease loss, or no change on line below)

____________Ans. Why?

1. a) What impact would a depreciation of the Brazilian Real relative to the Japanese Yen have on the U.S. company's profit/loss? ((increase profit, decrease profit, increase loss, decrease loss, or no change on line below)

____________Ans. Why?