Assume That You Manage a Firm That Faces Transaction Exposure

Assume that you manage a firm that faces transaction exposure.Your company manufactures and sells scooters around the world.You just completed a large sale of scooters to a chain of stores in Sweden and received a promised payment of 1,100 krona per scooter.You have already sold 2500 scooters and are now awaiting payment which you expect to receive in 90 days.The exchange rate today is 7.5 krona per dollar.Over the next ninety days the indirect exchange rate unexpectedly moves from 8.4 to 8.7.What will be your sales receipt in krona,and what amount of dollars will these kronas convert to at the indirect exchange rate?

A) 3,000,000 kronas and about 364,000 dollars
B) 2,750,000 kronas and about 316,092 dollars
C) 3,176,529 kronas and about 389,610 dollars
D) 2,7500,000 kronas and about 300,482 dollars