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on june 29 a french exporter had a debt of 200,000 which matured on june 30 the exchange rate set at USD 1 = 6.0720FRF
on june 29 a french exporter had a debt of 200,000 which matured on june 30 the exchange rate set at USD 1 = 6.0720FRF the exporter anticipates a rise in the dollar. the frnace interest rate is 12% the exporter decides to grant an additional payment period to the importer. The latter obviously accepts the exporter's proposal determine the financial result of the terminating operation following the decision taken by the exporter on June 29 if the exchange rate on July 30 is:
USD 1 = 6.6772 FRF USD 1 = 6.0720 FRF USD 1 = 5.4632 FRF
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