Assume that the exchange rate of US dollars to euros is $1.80 to 1 euro. How much would a US company gain or lose if the company has a 10,000 euro receivable and the exchange rate went to $1.75 to 1 euro?
a. $10,000 loss.
b. $10,000 gain.
c. $500 loss.
d. $500 gain.
Answer: c