CHAPTER 10 QUIZ 28
Assessing Exchange Rate Risk. Washington Co. and Vermont Co. have no domestic business.
They have a similar dollar equivalent amount of international exporting business. Washington Co.
exports all of its products to Canada. Vermont Co. exports its products to Poland and Mexico, with
about half of its business in each of these 2 countries. Each firm receives the currency of the
country where it sends its exports. You obtain the end-of-month spot exchange rates of the
currencies mentioned above during the end of each of the last 6 months.
End of Month Canadian Dollar Mexican Peso Polish Zloty
1 $0.8142 $.09334 $.29914
2 0.8176 .09437 .29829
3 0.8395 .09241 .30187
4 0.8542 .09263 .3088
5 0.8501 .09251 .30274
6 0.8556 .09448 .30312
You want to assess the data in a logical manner to determine which firm has a higher degree of
exchange rate risk. Show your work and write your conclusion.
USA 
India