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With the risk-sharing agreement, Company A purchases from Company B in Chinese RMB at the current spot rate as long as the spot rate is
With the risk-sharing agreement, Company A purchases from Company B in Chinese RMB at the current spot rate as long as the spot rate is between RMB5.90/$ and RMB6.80/$. If the spot rate falls outside of this range, both companies will share the difference equally. On the date of invoice (total of RMB95,000,000), the spot rate is RMB5.30/$. Company B would agree to accept what amount of RMB for this invoice?
A. 85,338,983
B. 89,910,714
C. 70,044,118
D. 79,291,339
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