Assume no transactions to prevent exchange rate risk

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Reference no: EM13861516

Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):

A. They are paid in dollars and the dollar depreciates between the date of the order and payment.

B. They are paid in euros and the euro appreciates between the date of the order and payment.

C. They are paid in euros and the euro depreciates between the date of the order and payment.

D. They are paid in dollars and the dollar appreciates between the date of the order and payment.

Reference no: EM13861516

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