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Business, 21.05.2020 03:03 williamwc290

In order to answer the next few questions (14-24), consider the following scenario. Your company has sold some parts to a French distributor. Your firm will receive 25 million euros in 60 days. The euro spot rate is 1.1060 $/euro, and currently you can enter into a future contract at 1.1101 $/euro. Note, euro futures and options are for 125,000 euros per contract. What exchange rate would you face if the euro depreciates 10% (to 4 decimal places)

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