Refer to Exercise 5. Assume that the shekel is forecast to devalue such that the new exchange

Question:

Refer to Exercise 5. Assume that the shekel is forecast to devalue such that the new exchange relationship after the devaluation is (￡ /$/ILS = 1/2/8).

Required:
Calculate the consolidated gain or loss that would result from this movement.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...