Cocoa Beverage Plc exports goods to New York valued at $30,000. Receipt of payment is immediate on delivery of the goods, what is the value of pound sterling received, given that the exchange rate quote is $/£ 1.3500 – 1.4500. Where 1.3500 is the bid price and 1.4500 is the ask price.
Cocoa Beverage Plc exports goods to New York valued at $30,000. Receipt of payment is immediate on delivery of the goods, what is the value of pound sterling received, given that the exchange rate quote is $/£ 1.3500 – 1.4500. Where 1.3500 is the bid price and 1.4500 is the ask price.
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 3ST
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Cocoa Beverage Plc exports goods to New York valued at $30,000. Receipt of payment is immediate on delivery of the goods, what is the value of pound sterling received, given that the exchange rate quote is $/£ 1.3500 – 1.4500. Where 1.3500 is the bid price and 1.4500 is the ask price.
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