Question: 3 . 1 8 ] Foreign Exchange. You just came back from Canada, where the Canadian dollar was worth $ . 7 0 . You

3.18] Foreign Exchange. You just came back from Canada, where the Canadian dollar was worth $.70.
You still have C$200 from your trip and could exchange them for dollars at the airport, but the airport
foreign exchange desk will only buy them for $.60. Next week, you will be going to Mexico and will need
pesos. The airport foreign exchange desk will sell you pesos for $.10 per peso. You met a tourist at the
airport who is from Mexico and is on his way to Canada. He is willing to buy your C$200 for 1,300 pesos.
Should you accept the offer or cash the Canadian dollars in at the airport? Explain.

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