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Question 2 A U . S . firm sells merchandise today to a British company for 1 0 0 , 0 0 0 . The
Question
A US firm sells merchandise today to a British company for The current exchange rate is $ the
account is payable in three months, and the firm chooses to avoid any heding techniques designed to reduce or eliminate
the risk of changes in the exchange rate. If the exchange rate changes to $ the US firm will realize a
of
loss; $
gain; $
loss;
gain;
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