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Home Buddy's Inc. is expected a cash inflow of Euro 15,368 for goods sold to customers in France and Germany and a cash outflow of
Home Buddy's Inc. is expected a cash inflow of Euro 15,368 for goods sold to customers in France and Germany and a cash outflow of Euro 27,743 for imports from Portugal. What is the expected dollar value of the company's net Euro exposure if the current spot rate is $ 1.19 / Euro and the following scenarios are forecasted?
Scenario | Probability | Euro appreciation or depreciation |
1 | 10% | -16% |
2 | 60% | 5% |
3 | 30% | 26% |
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