Changes in Exchange RatesUpon arrival at the international airport in the country of Cante...

Changes in Exchange Rates

Upon arrival at the international airport in the country of Canteberry, Charles Alt exchanged $200 of U.S. currency into 1,000 florins, the local currency unit. Upon departure from Canteberry’s international airport on completion of his business, he exchanged his remaining 100 florins into $15 of U.S. currency.

Required

a.Determine the currency exchange rates for each of the cells in the following matrix for Charles Alt’s business trip to Canteberry.

b.Discuss and illustrate whether the U.S. dollar strengthened or weakened relative to the florin during Charles’s stay in Canteberry.

c.Did Charles experience a foreign currency transaction gain or a loss on the 100 florins he held dur­ing his visit to Canteberry and converted to U.S. dollars at the departure date? Explain your answer.