Assume a U

question 2

Multiple Choice

Assume a U.S. company has a project in Switzerland that is expected to return 1 million Swiss francs in one year. If the Swiss franc appreciates relative to the dollar, then

• A)the return in Swiss francs will be lower than if the exchange rate had remained constant.
• B)the return in U.S. dollars will be lower than if the exchange rate had remained constant.
• C)the return in Swiss francs will be greater than if the exchange rate had remained constant.
• D)the return in U.S. dollars will be greater than if the exchange rate had remained constant.

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