A firm anticipates receiving $5$ million Euros in one year from a new contract that they just signed. They plan to pay this out as

a dividend once they receive it$.$

They also plan to use a forward contract to lock in an exchange of the euros for US dollars. The current savings rate in the US

is $1\%/$year and the rate to save in euros is $2\%/$year$.$ The current exchange rate is $1\mathrm{.}33$ USD per euro.