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What is expected gain-loss from forward hedge

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Question

Cray Research sold a supercomputer to the Max Planck Institute in Germany on credit and invoiced Euro 13.60 million payable in six months. Currently, the six month forward exchange rate is $1.28/euro and the foreign exchange adviser for Cray Research predicts that the spot rate is likely to be $1.23/euro in six months.

What is the expected gain/loss from a forward hedge?

Reference no: EM133373444

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