A Canadian firm has a transaction exposure to the Chinese market due to a recent import transaction. The firm is required to make a payment of 500,000 Chinese yuan (CNY) in three months. The current exchange rate is 5.2CNY/CAD. If the exchange rate changes 5.0 CNY/CAD at the time of payment, what will be the loss incurred by the Canadian firm?

Answer rating: 100% (QA)

The Canadian firms transaction exposure can be calculated by comparing the va... View the full answer