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Use the following information to answer Questions 1 and 2. Your firm is located in...

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Finance

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Use the following information to answer Questions 1 and 2. Your firm is located in the U.S. and a major customer is located in Great Britain. Due to historical negotiations, your customers pay your firm in British pounds. Your firm has just recorded a sale to the customer for 500,000. The customer has 30 days to pay the invoice. The current spot rate is 1 = $1.24. The foreign exchange expert at your firm believes that the exchange rate in 30 days will either be 21 -1.10 or 1 - $1.35. What is the US$value of this sale at the current spot rate O a $550.000 Oh. 1820,000 $500,000 Od 5675.000 Your firm is located in the U.S. and a major customer is located in Great Britain. Due to historical negotiations, your customers pay your firm in British pounds. Your firm has just recorded a sale to the customer for 500,000. The customer has 30 days to pay the invoice. The current spot rate is 1-$124. The foreign exchange expert at your firm believes that the exchange rate in 30 days wil sither be f1 - 3110 or 1 - $1.35. If the US$ depreciates, what is the expected US$value of this sale at the future exchange rate a $550.000 b. $500,000 Oc$620,000 Od 5675,000

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