If the Spot Exchange Rate of Mexican Pesos for U

question 84

Multiple Choice

If the spot exchange rate of Mexican pesos for U.S.dollars is MXN9.8=USD1 and the peso is trading at a forward premium of 3%,then you will receive:

• A) more than 9.8 pesos per dollar in the future.
• B) less than 9.8 pesos per dollar in the future.
• C) 9.83 pesos per dollar in the future.
• D) 10.09 pesos per dollar in the future.

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Definitions:

National Commerce Act

Legislation that regulates online or electronic merchant transactions and electronic signatures.

Seller's Remedies

The legal actions and compensations available to a seller when a buyer breaches a contract, including damages and the right to withhold goods.

Sales Contract

A contract for the sale of goods, as opposed to a contract for the sale of services, real property, or intangible property. Sales contracts are governed by Article 2 of the Uniform Commercial Code.

Nonconforming Goods

Products delivered to a buyer that do not meet the specifications or qualities explicitly or implicitly agreed upon in a contract.