B It adopts the firm trading mode, so it needs 650,000 euros. Since the exchange rate at the time of selling is Euro: USD =0.648, investors A and B can make a profit:
A:100× (0.653-0.648) = 5,000 euros.
B:100× (0.653-0.648) = 5000 euros.
On the contrary, if the exchange rate at the time of selling becomes Euro: USD =0.668, then their loss is:
A:100× (0.668-0.653) =10.5 million euros > 6,500 euros, with a loss of 6,500 euros.
B:100× (0.668-0.653) =10.5 million euros.
Extended data:
Operating leverage is often used to measure the business risk of an enterprise, and operating leverage generally uses the operating leverage coefficient, which is the ratio of the change rate of profit to the change rate of sales before calculating interest and income tax.
First, it reflects the changing relationship between profit change and sales volume change;
Second, the greater the operating leverage coefficient, the greater the role and operational risk of operating leverage;
Third, the fixed cost is constant, the greater the sales volume, the smaller the operating leverage coefficient and the smaller the operating risk, and vice versa;
Fourth, when sales reach the critical point of profit and loss, the operating leverage coefficient approaches infinity.
Enterprises can generally reduce operating leverage and operational risks by increasing sales and reducing unit variable and fixed costs.
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