Question

Apple is selling 30,000 units in Europe at an average price of €1,500 per unit. Both the
spot and forward exchange rates are $1.20/€. The cost of each unit in dollars is $1.300
per unit. The elasticity of demand for Apple computers in Europe is € - 1.5.
Now consider a depreciation of Euro (relative to US dollar) from $1.20 € to $1.08 € and
assume zero passthrough. What is Apple's exposure?
a $45 million
b. $20 million
c. €45 million
d. €20 million​

Answer 1

Answer:

hey MATE HERE IS YOUR ANSWER

Explanation:

A