Problem:
The dollar-per-euro spot rate is 1.45 when an importer of French wines places an order. Six months later, when she takes delivery, the spot rate is 1.55 dollars per euro.
Required:
Question: If her original invoice was for 31,600 euro, what is her gain or loss due to exchange rate risk? $3,160 gain $3,160 loss No gain or loss $6,320 loss.
Note: Explain all steps comprehensively.