In December, 20X4, a US company purchased merchandise from an Israeli firm for 100, 000 shekels. The exchange rates for the shekel were S.26 when the purchase was made, $.245 at year end, and S.24 when the shekels are paid in 20X5. What are the US exchange rate gains/losses? A. 20X4 $1,000 gain; 20X5 $1,000 gain B. 20X4 S1, 500 gain; 20X5 $500 gain C. 20X4 $1,000 loss; 20x5 $1,000 loss D. 20X4 $1,000 loss; 20x5 $2,000 loss E. 20 X4 $1,500 loss; 20X5 $500 loss

In December, 20X4, a US company purchased merchandise from an Israeli firm for 100, 000 shekels. The exchange rates for the shekel were S.26 when the purchase was made, $.245 at year end, and S.24 when the shekels are paid in 20X5. What are the US exchange rate gains/losses? A. 20X4 $1,000 gain; 20X5 $1,000 gain B. 20X4 S1, 500 gain; 20X5 $500 gain C. 20X4 $1,000 loss; 20x5 $1,000 loss D. 20X4 $1,000 loss; 20x5 $2,000 loss E. 20 X4 $1,500 loss; 20X5 $500 loss

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter4: Exchange Rate Determination

Section: Chapter Questions

Problem 29QA

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