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Pucini Fashionwear, based in New York City, imports leather coats from Boselli Leather Goods, a reliable and longtime supplier, based in Buenos Aires, Argentina. Payment
Pucini Fashionwear, based in New York City, imports leather coats from Boselli Leather Goods, a reliable and longtime supplier, based in Buenos Aires, Argentina. Payment is in Argentine pesos. Both Pucini Fashionwear and Boselli Leather Goods agreed on a risk-sharing arrangement. As long as the spot rate on the date of an invoice is between Ps3.5/$ and Ps4.5/$, Pucini will pay based on the spot rate. If the exchange rate falls outside this range, they will share the difference equally. Pucini Fashionwear contracts to import leather coats from Boselli Leather Goods for Ps8,000,000. If the exchange rate changes immediately to Ps6.00/$, what will be the dollar cost to Pucini Fashionwear? O $1,333,333.33 O $1,523,809.52 O $1,670,561.89 O $1,777,777.78
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