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Transaction exposure. International Products, Inc. has ordered 10,000 leather coats from Argentina for delivery in 15 months. The contracted cost of a coat is 133
Transaction exposure. International Products, Inc. has ordered 10,000 leather coats from Argentina for delivery in 15 months. The contracted cost of a coat is 133 pesos. International Products will pay for the coats upon delivery. The current indirect exchange rate is $1 for 1.3329 pesos. The anticipated inflation rate is 2.5 % in the United States and 7.4 % in Argentina. In U.S. dollars, how much will the 10,000 leather coats cost International Products at delivery?
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