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These are all part of one problem with the same information. If an importer buys 800CDs from France at a cost of 18 Euros each
These are all part of one problem with the same information.
If an importer buys 800CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit be if the spot rate is .9882 EUR/USD? A. $1.750.50 B. $2,310.00 C. $2,450.75 D. $3,769.92 QUESTION 6 If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit margin be if the spot rate is .9882 EUR/USD? A. 18.50% B. 19.20% C. 20.94% D. 23.53% QUESTION 7 If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit be if the spot rate is 1.232 EUR/USD? A. $259.20 B. $1,022.50 C. $1,100.50 D. $1,203.43 QUESTION 8 If an importer buys 800 CDs from France at a cost of 18 Euros each and sells them in the U.S. for $22.50 each, what will the profit marign be if the spot rate is 1.232 EUR/USD and the importer has a forward contract with a rate of 9888 EUR/USD? A. 1.44% B. 12.33% C. 20.9% D. 32.53%Step by Step Solution
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