-Refer to the Information Above to Answer This Question

question 66

Multiple Choice

-Refer to the information above to answer this question.At what price is the seller's total revenue maximized?

• A)$1.
• B)$10.
• C)$5 or $6.
• D)$4 or $7.
• E)$5.

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Definitions:

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.

Foreign Exchange Risk

The possibility of losing value due to changes in currency exchange rates.

Spot Rate

The current market price at which a particular asset, such as foreign currency, can be bought or sold for immediate delivery.