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A U.S.-based MNC exports machine toots to the eurozone and imports parts and raw materials from the eurozone. The MNC just signed a contract sell
A U.S.-based MNC exports machine toots to the eurozone and imports parts and raw materials from the eurozone. The MNC just signed a contract sell its products to an importer in the eurozone who requested to make payment in euros. At the current spot rate of \$1.06801e, the shipment is worth $100 million. At the same time the MNC signed a contract to buy parts from a eurozone supplier and accepted to sette its payment in euros. At today's spot rate of $1.088016, the shipment is worth $40 milition. Both contracts recuire delivery and settlement in three monthe. Determine the MNC's FX exposure: 5100 million in cash inflow and $40 million cash outfow \$50 mition cash intow \$40 million cash outfow | 656.18 million cash inflow e93.63 milion infiow and 37.45 million outhow
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