contestada

suppose on august 1, 2021 your company entered into a contract to deliver goods to germany. delivery of the goods was to occur three months later (november 1, 2021) with full payment of 35,000,000 euros due on the delivery date. suppose on august 1, 2021 when you signed the contract, the three-month forward exchange rate was equal to the spot exchange rate on that date. if you had entered into a forward contract using the august 1, 2021 exchange rate to hedge your 35,000,000 euro conversion into u.s. dollars, what would your gain or loss have been in u.s. dollars on the forward market transaction? (hint: similar to project problem 2.)