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Question
What is the end-of-year profit or loss on the bank's cash position if in one year the exchange rate falls to US $0.765/C $1? Assume there is no change in interest rates. (Choose the closest answer)
A. Loss of US $75,000.
B. Profit of C $274,000.
C. Loss of US $7,000.
D. Profit of C $9,000.
E. Loss of US $5,000.
Answer
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