Consider Problem 11.3. The accounts receivable balance is an anticipated receipt of €60,000 in six months from a German tourist agency. The tourist agency insists on paying in euros.

Silver Saddle can hedge its euro exposure at a forward rate of

$1.00/€, which also happens to be the current spot rate of exchange. Repeat parts

(a) through

(c) of Problem 11.3 for this forward hedge. In what ways is this hedge of an anticipated future receipt different from the hedge of a future obligation in Problem 11.3?