Spot Forex quote: EUR/USD = 1.06. A friendfrom France has asked you to purchase aBobcat baseball cap on their behalf andthey will pay you back. Your friend plans todeposit EUR into your Venmo account andthen Venmo will translate into USD for youwithout transaction costs. If the Bobcat hatyou are buying for your French friend costs$21, how many EUR will your friend need tosend via Venmo?A) your friend will need to send 19.81 EUR.B) your friend will need to send 21 EUR.C) your friend will need to send 22.26 EUR.D) There is not enough information tocalculate.

Spot rate EUR/USD = 1.06 Cost of Bobcat baseball cap in USD = $21 Cost of Bobcat baseball cap in EUR…

Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball cap on their behalf and they will pay you back. Your friend plans to deposit EUR into your Venmo account and then Venmo will translate into USD for you without transaction costs. If the Bobcat hat %3D you are buying for your French friend costs $21, how many EUR will your friend need to send via Venmo? A) your friend will need to send 19.81 EUR. B) your friend will need to send 21 EUR. C) your friend will need to send 22.26 EUR. D) There is not enough information to calculate.

Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball cap on their behalf and they will pay you back. Your friend plans to deposit EUR into your Venmo account and then Venmo will translate into USD for you without transaction costs. If the Bobcat hat %3D you are buying for your French friend costs $21, how many EUR will your friend need to send via Venmo? A) your friend will need to send 19.81 EUR. B) your friend will need to send 21 EUR. C) your friend will need to send 22.26 EUR. D) There is not enough information to calculate.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 33QA

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