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1 3 . Suppose your firm is planning to pay for goods imported from France. The payment will be made in two months and will

13. Suppose your firm is planning to pay for goods imported from France. The
payment will be made in two months and will require 225.5 million euro. The
current exchange rate, available in the forward market, is $1.0718=1 euro.
Explain the terms of the forward contract that your firm would need to
negotiate to protect the firm against changes in the $/ exchange rate?

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