A U.S.company that has purchased inventory from a German vendor would be exposed to a net exchange gain on the unpaid balance if the
A) amount to be paid was denominated in dollars.
B) dollar weakened relative to the Euro and the Euro was the denominated currency.
C) dollar strengthened relative to the Euro and the Euro was the denominated currency.
D) U.S.company purchased a forward contract to buy Euros.
Correct Answer:
Verified
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Q4: A U.S.company that has sold its product
Q5: A forward exchange contract is being transacted
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