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You just came back from Canada, where the Canadian dollar was worth $0.70. You still have C$200 from your trip and could exchange them for

You just came back from Canada, where the Canadian dollar was worth $0.70. You still have C$200 from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $0.60. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for $0.10 per peso. You have met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$200 for 1,300 pesos. Should you accept the offer or cash in the Canadian dollars at the airport? Explain. (4 Marks

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