Problemthe dollar-per-euro spot rate is 145 when an, Ask an Expert

Accounting

Problem:

The dollar-per-euro spot rate is 1.45 when an importer of French wines places an order. Six months later, when she takes delivery, the spot rate is 1.55 dollars per euro.

Required:

Question: If her original invoice was for 31,600 euro, what is her gain or loss due to exchange rate risk? $3,160 gain $3,160 loss No gain or loss $6,320 loss.

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167493

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