Business, 29.05.2021 19:10 jamilecalderonpalaci

NorthRim Inc. (NRI), imports extreme condition outdoor wear and equipment from the Allofit Territories Company (ATC) located in Canada. With the steady decline of the U. S dollar against the Canadian dollar NRI is finding a continued relationship with ATC to be an increasingly difficult proposition. In response to NRI's request, ATC has proposed the following risk-sharing arrangement. First, set the current spot rate as the base rate. As long as spot rates stay within 5% (up or down) NRI will pay at the base rate. Any rate outside of the 5% range, ATC will share equally with NRI the difference between the spot rate and the base rate. If the current spot rate is C$1.20/$, what are the upper and lower limits for trading to take place at C$1.20? a. C$1.205/$ - C$1.195/$
b. C$1.15/$ - C$1.25/$
c. C$1.14/$ - C$1.26/$
d. none of the above

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NorthRim Inc. (NRI), imports extreme condition outdoor wear and equipment from the Allofit Territori...

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