Question
Wells Fargo, a U.S. bank lends CAD 45,000,000 to a Canadian customer for one year at an interest rate of 5.5%. The repayment of the
Wells Fargo, a U.S. bank lends CAD 45,000,000 to a Canadian customer for one year at an interest rate of 5.5%. The repayment of the loan is to be made in CAD. The spot exchange rate is CAD 1.25/USD. If the spot rate a year from now is CAD 1.30/USD, Wells Fargo will have ___
| a transaction gain |
| a transaction loss |
| no change in transaction amount |
| a translation gain |
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Essentials Of Real Estate Finance
Authors: David Sirota, Doris Barrell
14th Edition
1475428391, 9781475428391
