A U. S. firm sells merchandise today to a British company for pound150,000. The current exchange rate is $1.55/pound , the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. If the exchange rate changes to $1.52/pound the U. S. firm will realize a of .
Gain; $4,500
Loss; $4,500
None of the above
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A U. S. firm sells merchandise today to a British company for pound150,000. The current exchange rat...
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