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Question 4 2 pts ABC, Inc. relies on technical forecasting to forecast exchange rate changes over short periods of time. ABC owes 5 million British
Question 4 2 pts ABC, Inc. relies on technical forecasting to forecast exchange rate changes over short periods of time. ABC owes 5 million British pounds (GBP) to one of its UK based suppliers. ABC can pay now, but it also has the option to wait until next week to make payment. Today, the GBP depreciated 2% against the dollar. Based on an analysis of historical time series, ABC has determined that whenever the GBP moves in a certain direction against the dollar by more than 1%, it experiences a sharp reversal the following week. What would be ABC's best course of action for making payment to its British supplier? In other words, should they pay their UK based supplier now or wait until next week? O The amount owed in dollars would be the same regardless of when payment is made ABC should pay now O ABC should wait until next week to make payment O Technical forecasting suggests that waiting till next week would result in a lower payment in terms of dollars
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