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3 . On August 1 st , Tiffany Co . ordered raw material from France and agreed to pay 1 0 0 million euros for
On August st Tiffany Co ordered raw material from France and agreed to pay million euros for this order on November st It negotiated a month forward contract to obtain million euros on that date at $ per euro. On September st the French firm informed Tiffany Co that it won't be able to fulfill that order. The euro spot rate on September st is $ and month forward rate exhibits a discount. To offset its existing contract, Tiffany Co will negotiate a forward contract to for
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