Spot exchange rates and highest returns


Suppose a U.S. importer purchases an Italian product today but will not pay for it for 90 days. The cost of the product today is 30,000 euros. The spot exchange rate today is .6233 euros per dollar. If the U.S. importer does not hedge the position, which of the following spot exchange rates in 90 days will yield the highest returns?

A) 0.6833 euros per dollar

B) $1.5387 per euro

C) $1.4844 per euro

D) 0.6499 euros per dollar

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Spot exchange rates and highest returns
Reference No:- TGS040742

Expected delivery within 24 Hours