Robben Inc

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) loss of $62,500
B) loss of $66,667
C) gain of $50,000
D) gain of $62,500
E) loss of $50,000