Question 27 (5 points)

Haines Co. expects to receive 5 million euros tomorrow as a result of selling goods to Belgium. Haines estimates the standard deviation of daily percentage changes of the euro to be 1 percent over the last 100 days. Assume that these percentage changes are normally distributed. Using the value-at-risk (VaR) method based on a 95% confidence level, what is the maximum one-day loss (in dollars) if the expected percentage change of the euro tomorrow is 0.5%?

Question 27 options:

	-$110,000
	$-25,000
	-$57,500
	-$75,000
	-$60,000