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O This rate does not exist 4 pts Question 5 Dell is selling 20,000 units in Europe at an average price of 1,700 per unit.
O This rate does not exist 4 pts Question 5 Dell is selling 20,000 units in Europe at an average price of 1,700 per unit. Both the spot and forward exchange rates are $1.20/E. The cost of each unit in dollars is $1,500 per unit. The elasticity of demand for Dell computers in Europe is e 1.5 Now consider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/ and assume zero passthrough. What is Dell's dollar profit exposure and how to hedge it using forward? OE45 million; sell 45 million forward $45 million; buy $45 million forward $34 million; buy $20 million forward 34 million: sell 34 million forward Question 6 4 pts O This rate does not exist 4 pts Question 5 Dell is selling 20,000 units in Europe at an average price of 1,700 per unit. Both the spot and forward exchange rates are $1.20/E. The cost of each unit in dollars is $1,500 per unit. The elasticity of demand for Dell computers in Europe is e 1.5 Now consider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/ and assume zero passthrough. What is Dell's dollar profit exposure and how to hedge it using forward? OE45 million; sell 45 million forward $45 million; buy $45 million forward $34 million; buy $20 million forward 34 million: sell 34 million forward Question 6 4 pts
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