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4. A French company is importing some equipment from Switzerland and will need to pay 10 million Swiss francs three months from now. Suppose that

4. A French company is importing some equipment from Switzerland and will need to pay 10 million Swiss francs three months from now. Suppose that the current spot exchange rate is, s(CHF/EUR) = 1.5543. The treasurer of the company expects the Swiss franc to appreciate in the next few weeks and is concerned about it. The three-month forward rate is F(CHF/EUR) = 1.5320. a) Given the treasurer's expectation, what action can he take using the forward contract?- b) Three months later, the spot rate turns out to be S(CHF/EUR) = 1.5101. Did the company benefit because of the treasurer's action

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