The Euro increased dramatically in value against the U.S. dollar between 2000 and 2009. The result has been that

Select one:

a. European exports to the United States are more competitive.

b. U.S. exports are more competitive in Europe.

c. U.S. travelers are finding it less expensive to travel in Europe.

d. U.S. goods cost more in Europe.

The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is .6211 pounds per dollar. Therefore, pounds in the forward market are selling at a ________ to the current spot rate.

Select one:

a. .958 premium

b. .958 discount

c. .04 discount

d. .04 premium

WSM Wine Importers, Inc. purchased 75,000 cases of French wine at a cost of 6,000,000 euros. If the current exchange rate is 0.7576 euros to the U.S. dollar, what is the purchase price of the wine in U.S. dollars?

Select one:

a. $9,328,651

b. $ 7,919,747

c. $9,684,148

d. $8,350,012