A manager signs a contract with a french company the spot


A manager signs a contract with a French company. The spot exchange rate is 1.15 US dollars per euro, and the French company agrees to pay one million euro in three business days. Hours after the contract was signed, a key economic data release was weaker than expected, and the exchange rate moves to 1.11.     

Please circle all of the true statements below:

a. The euro has appreciated, and the US dollar value of the incoming payment has increased.

b. The euro has appreciated, and the US dollar value of the incoming payment has decreased.

c. The euro has depreciated, and the US dollar value of the incoming payment has increased.

d. The euro has depreciated, and the US dollar value of the incoming payment has decreased.

e.  None of the above.

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Financial Management: A manager signs a contract with a french company the spot
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