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A senegalese company export phosphate to India. The amount of the contract is 5 million USD. The due date and payment are three months later.

A senegalese company export phosphate to India. The amount of the contract is 5 million USD. The due date and payment are three months later. At the time of contract conlusion, 1 USD = 600 F CFA. We assume that the treasurer does not take any hedging decision and three months later when the payment is received, 1 USD = 400 F CFA.

a. Analyze the situation of the company in terms of gain or loose.

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