b. You are a wine importer and have bought a large French wine shipment for 10 million [including delivery costs) with payment due in 90 days. You have a contract to sell the wine shipment on to a liquor store for $12 million with payment due on the same date. Today the spot rate is $1.05 per euro, and the 90-day forward rate is $1.10 per euro. Can you lock in a profit by hedging with forwards? How much? Explain. Can you potentially lose money if you don't hedge