Pont Has Entered into a Currency Risk Sharing Arrangement with British

question 38

Multiple Choice

Pont has entered into a currency risk sharing arrangement with British Gas. Under the contract, Du Pont agrees to pay British Gas a base price of $10 million for gas purchases, but the parties would share the currency risk equally beyond a neutral zone, specified as a band of exchange rates: $Within the neutral zone, Du Pont must pay BG the pound equivalent of $10 million at the base rate of $Suppose the spot rate at the time of payment is £1 = $How much will Du Pont owe British Gas?

• A) $10 million
• B) $9,702,381
• C) $9,588,235
• D) $9,819,277

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Definitions:

Geologic Map

A map that shows the distribution, nature, and age relationships of rock units, sediments, structures, and other geologic features.

Topographic Relief

The difference in elevation of one feature relative to another; synonym: relief.

Stratigraphic Section

A vertical profile or cross-section through sedimentary rocks or soils showing the sequence and relationship of strata.

Relative Thicknesses

Refers to the comparison of thickness between different layers or sections within a geological or material context.