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Question
A London based firm has a subsidiary located in New York. The subsidiary has $1,000 in assets, $750 in liabilities and $250 in equity. The current spot rate is $1.60/£.If the spot rate changes to $1.50/£, what will be the firm's gain or loss?
a. $10.42 gain
b. £10.42 gain
c. $10.42 loss
d. £10.42 loss
e. cannot be determined
Answer
This answer is hidden. It contains 47 characters.
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