1. Assume ABC expects to receive 20,000,000 in 90 days. a dealer provides a quote of $0.875 for acurrency forward contract to expire in 90 days. suppose that at the end of 90 days, the rate is $0.90. assume that settlement is in cash. calculate the cash flow at expiration if sun microsystems enters into a forward contract expiring in 90 days to buy dollars at $0.875.

At expiration, What is ABC's payoff?

1. Suppose you enter into along 6-month forward position at a forward price of $50. What is the payoff in 6 months for the underlying priced of $50?