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Suppose I am an American Company's subsidiary in France. My functional currency is USD. I have to pay 1.8 million

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Suppose I am an American Company's subsidiary in France. My functional currency is USD. I have to pay 1.8 million in EUR in 3-month. Spot rate in 3-month is likely to be 1.5 EUR / 1 USD, but now the spot rate is currently at 1.8 EUR/ 1 USD. Will I benefit from waiting ? Has EUR appreciated or depreciated ?

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In this scenario your functional currency is USD and you need to pay 1 8 million EUR in 3 months Cur View the full answer


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Related Book For  answer-question
International Financial Management

International Financial Management

ISBN: 9780077861605

7th Edition

Authors: Cheol Eun, Bruce Resnick

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Question Details
Chapter # 8- Management of Transaction Exposure
Section: Cases
Problem: 1
Posted Date: September 30, 2023 02:14:59
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