DEC Is Asked to Quote a Price in Belgian Francs

question 16

Multiple Choice

DEC is asked to quote a price in Belgian francs for computer sales to a Belgian company. The computers will be paid for in four equal, quarterly installments, beginning 90 days from now. DEC requires a minimum price of $2.5 million to accept this contract. Suppose the spot and forward rates for the Belgian franc are as follows: What is the minimum Belgian franc price that DEC should quote for this order?

• A) BF 82,781,457
• B) BF 87,108,014
• C) BF 81,433,225
• D) BF 84,745,763

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Definitions:

Resocialization

The process by which individuals learn new norms and values in response to a shift in their social environment, often involving the replacement of previously held behaviors and roles.

Investigation

A systematic inquiry to discover and examine the facts of an issue or problem.

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The degree to which members of a group are physically or socially close to one another.

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Refers to the specific location or role of an individual or an entity within a network, defining their level of influence, connectivity, and access to resources.