If the price of gold went from U$850 to U$1,400 and the exchange rate goes from $0.9721 per C$ to $0.9823 per C$, then there will be a net gain of C$550.83.

Question

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The net gain is calculated as follows:Gain from gold price increase: (1400 - 850) * 0.9823 = 539.26 C$Loss from exchange rate change: (0.9823 - 0.9721) * 850 = 8.73 C$Net gain: 539.26 - 8.73 = 530.53 C$The given net gain of 550.83 C$ is incorrect.

If the Price of Gold Went from U$850 to U$1,400