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.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 3ST

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