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Your firm is located in the U.S. and a major customer is located in Europe. Due to historical negotiations, your customers pay your firm in
Your firm is located in the U.S. and a major customer is located in Europe. Due to historical negotiations, your customers pay your firm in Euros. Your firm has just recorded a sale to the customer for 50,000,000. The customer has 30 days to pay the invoice. The current spot rate is 1 = $1.38. The foreign exchange expert at your firm believes that the FX rate in 30 days will either be 1 = $1.10 or 1 = $1.50. What is the US$ value of this sale at the current spot rate? $50,000,000 $69,000,000 $75,000,000 $55,000,000
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