Dollars because of currency fluctuation

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Your company invested $540,000 U.S in purchasing real estate in Argentina. The peso exchange rate at the time of the transaction was 1 peso = $0.2484. If the Argentinean peso is subsequently devalued to $0.2186, what would the loss in U.S.dollars because of currency fluctuation.

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This small individual project was based on the theory of Forex managements, this given question required us to identify the profit or loss rising for the Forex investment, basically the profit or loss rising from the transactions are computed based on the fact of fluctuation on Forex rate due to supply and demand theory and other controllable and non controllable factors.

Reference no: EM131451557

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inf1451557

12/26/2017 4:47:49 AM

This is a question on an exam. According to the instructions I need to pick the answer from either A, B, C or D below. Question: Your company has invested $540,000 U.S. in purchasing real estate in Argentina. The peso exchange rate at the time of the transaction was 1 peso = $0.2484. If the Argentinean peso is subsequently devalued to $0.2186, what would be the loss in U.S. dollars because of currency fluctuation? A. $102,824.72 B. $59,243.12 C. $64,782.61 D. $72,831.24

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