Business, 14.03.2020 00:24 theoriginalstal9245

Primary Inc. will be sending a clothing buyer to Italy in 6 months and the firm has budgeted 10,000 euros for the trip. Currently, the exchange rate is $1 = 0.88 euros. The management at Primary Inc. is concerned that the value of the dollar may decrease thereby increasing the cost of the trip. Therefore, the manager goes to the bank today and enters into a contract to purchase 10,000 euros at a rate of 0.85 euros in six months. Primary Inc. has:

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Primary Inc. will be sending a clothing buyer to Italy in 6 months and the firm has budgeted 10,000...

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