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2. Currency risk ($28.3) You have bid for a possible export order that would provide a cash inflow of 1 million in six months. The

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2. Currency risk (\$28.3) You have bid for a possible export order that would provide a cash inflow of 1 million in six months. The spot exchange rate is EUR/USD =1.3549 and the six-month forward rate is EUR/USD =1.3620. There are two sources of uncertainty: (1) the euro could appreciate or depreciate, and (2) you may or may not receive the export order. Illustrate in each case the final payoffs if (a) you sell 1 million euros forward, and (b) you buy a six-month option to sell euros with an exercise price of EUR/USD =1,3620

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