Question
If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what
If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit be if the spot rate is .9882 EUR/USD?
| A. | $1.750.50 | |
| B. | $2,310.00 | |
| C. | $2,450.75 | |
| D. | $3,769.92 |
If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit margin be if the spot rate is .9882 EUR/USD?
| A. | 18.50% | |
| B. | 19.20% | |
| C. | 20.94% | |
| D. | 23.53% |
If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit be if the spot rate is 1.232 EUR/USD?
| A. | $259.20 | |
| B. | $1,022.50 | |
| C. | $1,100.50 | |
| D. | $1,203.43 |
If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit marign be if the spot rate is 1.232 EUR/USD and the importer has a forward contract with a rate of .9888 EUR/USD?
| A. | 1.44% | |
| B. | 12.33% | |
| C. | 20.9% | |
| D. | 32.53% |
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Finance And Sustainability
Authors: William Sun, Celine Louche, Roland Perez
1st Edition
1780520921, 978-1780520926
