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AMA ZON is exposed to foreign exchange risk due to its international operations. It expects to receive 100,000 in six months. If the current exchange
AMA ZON is exposed to foreign exchange risk due to its international operations. It expects to receive €100,000 in six months. If the current exchange rate is 1 euro = $1.20, but the company is concerned that the euro may appreciate, it can use a forward contract to hedge its currency risk. Calculate the amount of dollars the company will receive if it enters into a forward contract to sell euros at a rate of 1 euro = $1.25 in six months
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