Question
The current spot rate is $1.5833 / . You are selling a product and you charge domestic customers $300,000.00. How would you share the FX
The current spot rate is $1.5833 / . You are selling a product and you charge domestic customers $300,000.00. How would you share the FX risk with your European customers if you decided to do two currencies on your invoices? How much will you receive if the spot rate ends up at $1.6941 / ?
A.Bill them for $150,000 and 237,495. You receive $290,189
B.Bill them for $150,000 and 94,739. You receive $310,497
C.None of the alternatives
D.Bill them for $300,000.00 and 237,495. You receive $508,230
E.Bill them for $150,000 and 254,115. You receive $310,497
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