Question
You just came back from Canada, where the Canadian dollar was worth $.75. You still have C$500 from your trip and could exchange them for
You just came back from Canada, where the Canadian dollar was worth $.75. You still have C$500 from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $.65. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for $.20 per peso. You met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$500 for 1400 pesos. Should you accept the offer or cash the Canadian dollars in at the airport? Explain.
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