Multiple Choice
Robben Inc. converts $1,000,000 into euros when the exchange rate is $1 = €0.75. After three months, the company converts this back into dollars when the exchange rate is $1 = €0.80. Which of the following is the outcome of this transaction?
A) A loss of $62,500
B) A loss of $66,667
C) A gain of $50,000
D) A gain of $62,500
E) A loss of $50,000
Correct Answer:
Verified
Correct Answer:
Verified
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