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15.On June 1, Hewlett Packard sold computer equipment to Nokia for 1,000,000 kroner.Payment for the goods is due August 1.The exchange rates for $1 U.S.

15.On June 1, Hewlett Packard sold computer equipment to Nokia for 1,000,000 kroner.Payment for the goods is due August 1.The exchange rates for $1 U.S. are as follows:

Exchange Rates of $1 forNorwegian Kroner

Spot rate, June 1 5.60

Forward rate, August 1 5.70

Spot rate, August 1 6.00

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If Hewlett Packard hedges 800,000 kroner andself-insuresthe rest, whatgainor loss will the company record on its books for the sale to Nokia?

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