Fleur du Lac, a Trance company, has shipped goods to an American importer under a letter of

Question:

Fleur du Lac, a Trance company, has shipped goods to an American importer under a letter of credit arrangement, which calls for payment at the end of 90 days. The invoice is for $124,000. At present the is 5.70 Trance francs to the dollar. If the Trance franc were to strengthen by 5 percent by transactions gain or loss in Trance francs? If the Trance franc were to weaken by 5 percent, what would happen? 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...