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A US-Based Exporter Anticipated Receiving €100 Million in Six Months,and

Question 20

Multiple Choice

A US-based exporter anticipated receiving €100 million in six months,and took a short forward position,locking-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/€

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