The spot exchange rate at maturity must be

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A US-based exporter anticipated receiving €100 million in six months, and took a short forward position, ocking-in an exchange rate of $1.38/€. If after six months, at maturity, the exporter calculates that she has made a profit of $2 million from the hedging strategy, the spot exchange rate at maturity must be

(a) $ 0.50/€.

(b) $ 1.36/€

(c) $1.40/€

(d) $ 2.00/€

Reference no: EM131529115

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