Multiple Choice
Severus Co. has to pay 5 million Canadian dollars for supplies it recently received from Canada. Today, the Canadian dollar has appreciated by 2 percent against the U.S. dollar. Severus has determined that whenever the Canadian dollar appreciates against the U.S. dollar by more than 1 percent, it experiences a reversal of 40 percent of that change on the following day. Based on this information, the Canadian dollar is expected to ____ tomorrow, and Severus would prefer to make payment ____.
A) depreciate by .8 percent; today
B) depreciate by .8 percent; tomorrow
C) appreciate by .8 percent; today
D) appreciate by .8 percent; tomorrow
Correct Answer:
Verified
Correct Answer:
Verified
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