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Effective exchange rate

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You are to receive €145,000 on July 30 from a customer in Germany. Today's spot price is $1.14/€ and the August forward rate is $1.18/€. You enter an August futures contract (€125,000) to sell the euro at $1.18/€. When you receive the €145,000 on July 30 the spot exchange rate is $1.15/€ and you sell the €145,000. On that same day you close your futures contract at $1.15/€. What is the effective exchange rate you received for the €145,000? Go to 4 decimal places.

Reference no: EM131180570

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