Al-Rawabi Company is an Omani firm offering different services. However, its main activity focuses on importing goods from Canada. Often, the firm pays its bills in CAD keeping part of its liabilities denominated in this currency. Suppose the spot rate 1 CAD = 0.3030 OMR and the 3-month forward rate is CAD 3.2938/OMR. Specify the risk carried out by this firm. O a. No change in OMR value O b. No change in CAD value O C Appreciation of CAD O d. Appreciation of OMR

ENGR.ECONOMIC ANALYSIS
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Al-Rawabi Company is an Omani firm offering different services. However, its main activity focuses on importing goods from Canada. Often, the firm
pays its bills in CAD keeping part of its liabilities denominated in this currency. Suppose the spot rate 1 CAD = 0.3030 OMR and the 3-month forward
rate is CAD 3.2938/OMR. Specify the risk carried out by this firm.
O a. No change in OMR value
O b. No change in CAD value
O C Appreciation of CAD
O d. Appreciation of OMR
Transcribed Image Text:Al-Rawabi Company is an Omani firm offering different services. However, its main activity focuses on importing goods from Canada. Often, the firm pays its bills in CAD keeping part of its liabilities denominated in this currency. Suppose the spot rate 1 CAD = 0.3030 OMR and the 3-month forward rate is CAD 3.2938/OMR. Specify the risk carried out by this firm. O a. No change in OMR value O b. No change in CAD value O C Appreciation of CAD O d. Appreciation of OMR
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